What Kinds of Fees are There for Credit Card Processing?

There are different fees that can come with credit card processing, especially if you choose the wrong merchant account provider, and it can seem confusing to know how to handle each one. The one that you will end up paying (or charging to the customer), can depend on your type of business, the country where you are located, and whether you plan to process cards in person. But the biggest factor in determining your fees is which merchant account provider. That’s why it’s very important to make sure that your merchant account provider provides low-cost assurance, so that you can know that you have access to the lowest costs available.

Typical Fees

There are three main types of fees that come with card processing transactions. These can include flat, incidental, and transactional.

Transaction Fees

A transaction fee is one that occurs each time that your business conducts a transaction. This can include an authorization fee, or a discount rate. These would be assessed as follows:

• Authorization fee: This fee charged each time that you conduct a sale, regardless of the amount of the sale.
• Discount Rate: This will be a percentage of an approved sale amount and can be as high as 2%.

To keep these fees low, make sure that your merchant account provider offers low cost assurance. Keeping these fees low can help you save money and can make it easier to run your business the way that you want to.

Incidental Fees

These fees are for special services you may use, but which you are may not use on a regular basis. It can include things like retrieval requests, chargebacks, or for choosing to close your account before a specified time. These do not happen all the time and can often be avoided with some care. In particular, make sure to select a merchant account provider that does not charge a feel for closing your account so that you can take advantage of a lower rate if one becomes available.

Flat Fees

Like incidental fees, these will not be charged after every transaction. They may be charged monthly or annually. You should look through your contract to make sure that none of the fees are a surprise for you at the end of the month!

The Takeaway

Do not let these fees discourage you from processing cards for the business. Before you sign up for a merchant account, make sure you understand which of these fees may apply to your account. By selecting a merchant account provider that offers low cost assurance and does not charge an early termination fee, you can keep your costs as low as possible.

To find out more about credit card processing fees or to sign up for a merchant account, you can visit Charge.com or call (888) 924-2743. No matter what you sell or how you sell it, Charge.com can help your business succeed and grow.