Across industries, such as utility, e-commerce, travel agency, collection agency…it’s no surprise the vast majority of consumers prefer to pay for products and serviceMerchant Credit Card Fees, Credit Card Processing, Merchant Accounts with credit cards. Being such, it is important to educate yourself and your business on the most common credit card fees.

Determining the exact amount your business pays for the ability to accept and process credit cards can be overwhelming if you do not have a basic understanding of how the process works. Generally speaking, each industry and business will have rates and fees set based on the products and services sold, and the manner in which they sell them. It is always best to consult with a payment processing expert, like Payment Savvy, in order to determine the exact credit card acceptance program that works best for your company.

Common Merchant Credit Card Fees – The Interchange Fee

The interchange fee constitutes the majority of credit card processing rates and fees. This fee is typically positioned as a percentage of the transaction amount. Interchange fees can vary and are based on factors such as the credit card type, how the payment is processed, and the merchant SIC Code. Some credit card issuers make their interchange fees publicly available, while others do not.

Common Merchant Credit Card Fees  – The Assessment Fee

The assessment fee is significantly smaller than the interchange fee. It is paid directly to the credit card network – such as Visa, MasterCard, Discover, or American Express. These fees are based on numerous factors and also vary from one network to the next. While some networks charge higher rates based on credit or debit card usage, other networks will charge higher rates for larger transaction volumes. Unique transactions are also taken into account. For example, additional fees may apply when a foreign transaction is being processed.

Common Merchant Credit Card Fees  – Acquiring Bank Fees

The acquiring bank chosen to provide your business with the ability to accept credit and debits cards will also charge a fee for services rendered. This may be a flat monthly fee or on a per transaction basis. Please keep in mind that if your business is considered high-risk from a payment processing standpoint, you may pay a higher rate than more traditional businesses. Fortunately, there are payment processing specialists, like Payment Savvy, that offer solutions such as high-risk merchant accounts.

Payment Savvy specializes in provides all types of businesses with the ability to accept credit and debit card payments. Please contact Payment Savvy today to review your options, apply for a high-risk merchant account, and to obtain answers to your questions. We look forward to hearing from you and working with your company.

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Charged with ensuring our prospects and customers always receive an A+ experience, Lauren comes to Payment Savvy with skill-set that is second to none. Having spent over a decade in the accounting realm, she diligently works to guarantee our clientele obtains excellent payment solutions and customer support. With additional experience in sales and marketing, Lauren’s well-rounded expertise makes her an invaluable part of our Savvy Squad. She is a regular staple at trade shows and conventions across the country, next time you see her – stop by and say hello! We promise she doesn’t bite!