Saving on Credit Card Processing Fees
When you are launching a new company, or you are expanding the one you’ve already built, it’s good practice to make sure you are not getting ripped off in regards to credit card processing services fees. Every company has a different base rate; for example, 1.71% on each bill, plus 30 cents per card swipe. Others may charge less or more, so this is something you have to look for and take into consideration.
You may think having your bank process and deal with your credit card processing system is easy and convenient, however, most third-party transactions are charging your more fees and you can easily be saving hundreds, if not thousands, a year. I know it may feel overwhelming to find a credit card processing bank that works for you, but looking at the different fees and learning which one best works for your company is the right way to go, in the end you will see that it is worth it by the amount you are saving in your bank account.
Look for the following:
Credit card processing equipment, such as terminals, can run from $300 to $800 a piece. Some companies offer software with a packaging system. Merchants need to connect to their processor as well and this will involve having a separate way to connect, either via telephone line or the Internet.
Pay attention to how fast the processor works. Some can take up 5 minutes to process a transaction, which can easily lead to you losing the sale if the person is in a rush and cannot wait for your system to get up and running. Make sure that your credit card terminal is issued by a bank that is insured by the Federal Deposit Insurance Corporation. This may save you money in the long run.
Fees are the main aspect of Florida credit card processing that you should focus on. The base rate is around 2% on each bill, which is pretty good. Make sure you are not getting charged different fee rates for different transactions. For example, a telephone order may have a higher interest rate and may charge you 3% to 5% per transaction. You have to remember that the processor has to pay a fee to the credit card companies as well, which is usually in the range of 1.65% for a normal credit card transaction. So if the processor is offering you less than 1% of that fee, you are ahead of the game. Termination fees are tricky, so make sure you read your contract beforehand and try to avoid termination fees and excessively long contracts.