The Basic Facts: Credit Card Processing Fees
When it comes to credit card processing, it is important that you know all the facts. After all, many times credit card processing services can come along with a long-term contract. If you don’t know everything about the fees and subscription costs you can end up paying far more than you meant to for the service. Since your processing statement will typically lump all of the fees together, then it is important to know how that number came about by breaking down each individual purchase in order to truly see what you are paying for. Since this can take a great deal of time, a good way to cut down the time is to know the fees inside and out. Here are some things to remember:
- Processing fees for Visa & MasterCard Purchases – These are composed of two major fees:
- Each company will charge a different percentage of the transaction amount OR they will give you a fixed amount per transaction that they charge.
- There is also an additional fee, which as of 2011 was 0.11% and is referred to as an Assessment Fee.
- Merchant Account Provider
- Be aware that this can be a separate fee if your credit card processing service cannot provide you with a merchant account and you need to get one through a bank. These require approval and can have a lengthy process attached to them, so start your research now.
So now that you know a little more about the regular fees, keep in mind that some companies will have additional fees that are simply stated in the contract. Some companies may not even go over these with you, and just hope you sign the contract. Make sure you ask lots of questions and are sure to get all the facts before signing up for services.
Skybank Financial provides merchant services to small and mid-size companies in North and South America. For more information, call 1-800-718-0446.