Credit Card Processing Rates

Be Clear About Credit Card Processing Rates

It is important that you are clear on credit card processing rates and contractual costs. By understanding what credit card process service rates are, you can compare credit card processing services and choose a merchant account associated with super low fees. There are several traditional fees associated with credit card processing services you should familiarize yourself with when you are interested in availing yourself of such services for your business.

If you plan on investing in credit card processing equipment for your physical location, otherwise called point of sale terminals, you can anticipate paying, at minimum, $150.00 to $700.00 for the equipment you will need. You may be able to lease this equipment for far less, but you end up paying more in the long term. If you opt for wireless credit card processing equipment you can end up paying as little as $500.00 to as much as $1000.00 for the hardware you require.

You can anticipate having to pay credit card processing rates identified as discount fees. This fee is how the merchant account provider makes a profit off of every transaction you process. Cards that are processed via physical hardware have higher rates than those cards that are processed through a virtual environment. You will find that when you make use of point of sale credit card processing equipment you can pay as much as three percent for every transaction you process. Meanwhile, online credit card processing rates can be as low as 1 1/2 percent for every transaction processed. Why the discrepancy in rates? The truth is that when you manually process your transactions by hand with hardware, there is more room for fraudulent activity; the increased risks associated with such transactions result in the higher processing rates for credit card processing.

 

 

 
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