Compare Credit Card Processing Service Prices - BUYERS GUIDE 2018
What Are Credit Card Processors and How Much Do They Cost?
Credit card processing fees are typically charged on a percentage basis of 0.35% to 3% on every transaction, depending on whether or not the card was present at the point of purchase. On top of that, there is usually a monthly fee that may range as high as $36 per month.
Credit card processing companies allow you to actually receive payment for goods and services via credit or debit cards. By utilizing this type of service, you can allow your business to meet the needs of your customers who are looking for easier and more varied payment options. It also allows you sell your goods and services through additional channels such as telephone or online ordering.
Compare Credit Card Processing Pricing
Tips For Choosing a Credit Card Processing Solution
Do you need advice on credit card processing? We have some tips that can help you. Read this article for our credit card processing buyer's guide.
Cash is quickly become a thing of the past and buyers now expect to be able to make purchases by card.
Whether it is in-store, over the phone or online, you could be missing out on valuable sales. It is all about convenience!
Is your business losing money because you don't have card processing set up?
Read our Credit Card Processing Buyer's Guide to find out more...
Fees and Charges
Businesses may avoid using card processing services because of any additional costs involved.
There are not only transaction costs but monthly fees and termination fees to consider.
Here are a few of the fees you may encounter:
Interchange fees are charged for every transaction. This means, every time a customer makes a purchase, you are charged a percentage of the sale.
This is could be fairly small and depends on the company you choose to go with. Be aware, as this fee might be as high as 5%.
Different payment types may incur different types of interchange fees. Online transactions may have higher fees as they are more of a security risk.
Some businesses may choose to pass these fees onto the customer while others absorb it in their original price.
Some processing companies work a little differently. They will waive the interchange fees and replace with a flat rate per transaction.
This often works well for big ticket items!
For example, a 5% fee on a $5000 item is going to be much more than a $5 flat rate.
This is where you have to know what you are selling and the median price point.
Often companies will charge you a monthly gateway fee which is really just for providing the service.
This may cost you up to $30 a month, you should compare providers to get the best deal.
In addition, you may be charged a fee for receiving your statements in the mail. If you can, switch to a digital version to avoid this extra cost.
Some companies may even charge you a monthly minimum fee. Your transaction fee structure may have a lower limit owed per month.
This means, if you don't reach the minimum threshold you may have to pay a gap. If you are starting out, try to avoid this until you are bringing in a regular income.
Application Fees and Early Termination Fees
You may have to pay a fee before beginning and ending the service. Get out your magnifying glass and read the fine print before signing up.
This will ensure you know whether they are hiding any of these sneaky fees.
What Do You Need It for?
Who are your customers and what do you need the card processing tool for?
The answer to these questions depends on your business model. Businesses with a larger turnover will have different needs to a small start up.
You need to ask yourself:
- How long have you been in business for?
- Are you an online business or bricks and mortar store...or both!?
- Do you prefer a flat fee or a percentage based fee?
- What monetary value products or services do you sell?
- Are you a not for profit business?
- Are you a medical business?
Once you have established your card processing needs, you can start to research which company best suits your business.
Which Cards Do You Want to Accept?
Did you know not all card processing systems accept all payment types?
Some companies may require you to choose between Visa, Discover, MasterCard and American Express. Or, they may charge you a higher rate for having them all.
Think about whether you want to accept payments by bank card, this might not be a problem online but your in-store customers may like this option.
If you do want to accept gift cards or e-cheques you need to take this into account before making your selection.
How Much Support Will You Need?
If you are technology savvy you may not need much assistance with the setup and maintenance of your card processing.
However, if you feel as though you will need assistance (now or in the future), look for a company which has good customer service.
Give them a phone call, write them an email or contact them on social media. Are they quick to respond?
Do they have the answers listed on their website? As this is a financial agreement, you need to know who you are dealing with and be able to ask questions if necessary.
The actual set up should be straightforward, and the instructions clear and concise.
Are There Any Additional Items You Need?
When deciding on a company to process your sales, look to see whether you require any additional equipment.
Some brands may supply a device specifically for this purpose. Others may require you to use your phone, iPad or computer.
Brainstorm which style works best for your business. You don't want to enter a contract without all the information.
There are a number of companies out there who can help process your sales, here are a few to get you started:
- Paypal - will suit a low budget and is a popular choice for online purchases
- Flagship Merchant Services - low rates, no termination fee and no contracts
- Square - suitable for mobile credit card processing
- TSYS - for medical practices only
- Dharma Merchant Services - for nonprofit businesses types
- Stripe - is an online processing system, good for internet transactions
- Authorize.net - a flexible option for online, mobile or in-store transactions
- Cayan - cloud-based technology systems with high security
- ShopKeep - this works as a cash register via your iPad. Suitable for retailers
Card Processing Wrap Up
If you are serious about growing your business, finding a credit card processor to suit your needs could be essential.
Once you know which style suits your customer, you will wonder why you didn't do it sooner! Now is the time to grow your business.
Are you looking for a card processing company? Or do you already use one which is on our list?
We would love to hear your feedback in the comments section below.
Credit Card Processing Sample Costs
Below are a few examples of prices for credit card processors which will give you an idea how much you will pay for your purchase.
- $85 to $200 Minimum Cost of EMV Upgrades
- Interchange Plus Markup range is between 18% -0.25%
- Per transaction fees cost about $0.10
- Swiped Debit Card Rates are38%-2%
- 58%-3.5% average for swiped credit cards
Find Credit Card Processors Near You and Compare Up To Five Money Saving Quotes
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