ecommerce

How To Save On Credit Card Processing Fees10 September 2011

Let's say that you run a retail business selling computers. One day, you get a call from a salesman; he wants you to switch credit card processors. Go with it, he says, and you will have a free credit card processing terminal, a low discount rate, and very low administrative fees. You really hate those credit card processing fees; so you think to yourself that this could be a great offer. You sign up, and you watch closely to see how all the savings add up. Usually, the discount rate, which is what you have to pay the credit card company and credit card processing fees for each swipe, is officially 2%. But there are all kinds of complexities involved in the matter; usually, retailers find that their actual fees come to 5%. After about two months, the jig is up - the new people charge no less than the old people. You know that you've been had.

The problem is that understanding a contract for credit card processing fees can be a terrible task. It's like asking you to read your health care plan and understand the fine print. Any vendor can quote you very encouraging-sounding prices; but those will be special case prices that you can never take advantage of in real life. For instance, if a customer actually takes out an ordinary credit card and swipes it, that could qualify for the low rate. If there is no physical card and someone has to key in the number, or if a customer shows up with the government or business credit card, your processing fees go up.

And that isn't even it. For a credit card sale that you get to make, you need to pay something called transaction fees to the processor. It's about 30 cents for every sale. And of course, you have to have an Internet presence and credit card processing ability over the Internet. The payment gateway fee is another monthly drain on your resources. And then for debit card sales, there is the debit transaction fee, there are chargeback fees, address verification service transaction fees, termination fees and monthly fees. It's enough to put anyone off the whole thought of starting a business in the first place.

Some processors are transparent upfront about all of this; others try to make their money by getting you completely confused. Basically, unless you have the mind of a corporate lawyer, there is really no way you can compare one offer with another.

The best way to make your way through all of this is as usual to learn enough about everything. You need to read up enough about the whole business so that you understand the terminology the business uses. Ask to see the fee schedule and sit down and evaluate it properly. Make sure that you don't sign a long-term contract; and be sure that whatever you do, you don't go with an unreliable operator just a pinch a few pennies.

Want to find out more about credit card processing savings, then visit our site on how to choose the best credit card processing for your needs.

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Opt for Credit Card Processing & Merchant Services to Boost Sales05 September 2011

Although plenty of credit card business takes place at a cash register within a brick and mortar store or some such fixed location, a lot of credit card transactions need to take place in locations where it is not possible to install a stationary credit card machine. This is where a merchant services provider comes in with wireless credit card machine equipment which is available on demand making him a great partner if you are looking to conduct business at any time and any place you might be. With mobile credit card machine equipment you can now receive payments through credit card processing at just about any place whether it is street fairs, trade shows, service sites or craft shows or any place else where you are able to get a signal on your cell phone.

To make sure that your business succeeds and flourishes, your company requires more options for payment and inventive, mobile credit processing equipment is just what you need. Wireless machines that are vendor owned result in an increase in sales, faster cash flow and enhanced efficiency. Mobile merchant services in the form of your very own wireless credit card processing machine are just the thing that you need.

To make sure that you qualify for the merchant services rates that are the lowest they can possibly be when receiving payments with debit and credit cards, you are required to be able to swipe the card at the time of making a sale. The best merchant services providers provide sleek, compact, light and stylish swipers that are so small they fit into your pocket and can be plugged into the headphone jack of your device. A straightforward swipe of the customer's card is all that is needed, the credit card processing takes place and the business transaction is completed. You receive revenue in an instant.

Other kinds of credit card processing equipment might come with end to end encryption and will also fit in your pocket. A lot of mobile card swipers today are compatible with some Blackberries, iPhones and Android based phones besides most mobile carriers. Make sure these features are available when you choose a mobile card swiper from one of the merchant services providers and also check that the machine is compatible with the wireless carrier as well as your phone.

The customer service behind the credit card processing equipment is as important as the mobile merchant services. An expert merchant services provider will be able to explain all the ins and outs of how to process mobile payments on the move so make sure that they provide good service both before and after you buy the equipment.

Want to find out more about credit card processing, then visit emerchantsolution.com's site on how to choose the best merchant services for your needs.

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Merchant Account - How To Evaluate Credit Card Merchant Service Fees For Your Retail Storefront02 September 2011

Credit card processing companies charge various fees for their services. Some of the fees make sense as they add value to the customers while some could be just a sham. Seeing frequent entries of fees with vague names in the monthly transaction statements can be very annoying for merchants. Understanding the purpose of the various kinds of fees helps merchants judge their worth and accept them without qualms if they are genuine.

The usual types of fees charged by credit card processors are explained below:

Application fee
Some credit and debit card processing companies charge an application fee. This fee is unnecessary and can easily be done without. Reputed processors do not levy this fee as they make sufficient profit by processing the large volume of transactions of the business account.

Startup fee
Setting up a credit card processing account needs certain processes to be set into motion. Amount charged by credit and debit card processors varies but a setup fee of around $25 is quite reasonable. The amount is worthwhile if the setup works well.

Statement fee
Credit card processing companies send out a statement to the merchants at the end of each billing cycle. The statement contains important details such as the number of transaction, and the time and date stamps of the swipes. This information is useful to merchants as it provides data for analysis and decision-making. Credit and debit card processors generally charge a monthly fee of $7-$10 for the statements.

Monthly minimum fee
Credit card processing companies need to make profit at all times to maintain their operations. They fix a minimum fee per month to ensure some revenue in dry spells. This is specified in the contract. Credit processors charge a percentage of the value of each transaction. If the amount falls below the monthly minimum, the agency will collect the minimum fee from the business.

Discount rate
Credit card processing companies charge a percentage of the transaction amount. This is the primary fee, and it generally ranges from 1.5% to 2% per transaction but could be as high as 5% for some contracts.

Charge back fee
Sometimes, the sale on a credit card is returned and amount has to be refunded. A business may have to pay a fee if the charge backs are very frequent. Usually, the fee is only charged if the count of charge backs exceeds a certain number allowed in a month.

Gateway fee
Gateway fees apply to businesses that use ecommerce applications to sell their products and services. The card processor provides services such as a basic web site, a shopping cart application and a system that allows the business to accept and verify online credit payments. Gateway fees may cost around $10 per month.

Termination fee
Credit card processors have contracts of 1-3 years with businesses. Early termination of the contract incurs a fee of $100-$300. Many agencies do not levy this charge, but the costs of other services may be higher than most.

Credit Card Processing companies need to charge a fee to stay in business. The total fee paid out to a processing agency should not exceed 2% of the total credit sales of a business. This is a reasonable figure that works for both businesses and credit card processing agencies.