Everything You Need to Know Best Credit Card Processing!
When it comes to credit card processing, there are a lot of things that you need to know in order to get the best possible deal. Here is a quick guide to everything you need to know about credit card processing so that you can make an informed decision when you are ready to sign up for a merchant account.
First of all, you need to understand the fees associated with credit card processing. There are usually three main fees that you will be charged: the interchange fee, the assessment fee, and the transaction fee.
The interchange fee is charged by the credit card issuer and is based on the type of card that you are using. For example, if you are using a Visa card, you will be charged a higher interchange fee than if you were using a MasterCard.
The assessment fee is charged by the credit card processor and is based on the number of transactions that you process each month. This fee can vary depending on the processor, but it is typically around $0.30 per transaction.
The transaction fee is charged by the merchant account provider and is based on the total amount of the sale. This fee is usually a flat rate, but it can vary depending on the processor.
In addition to these three main fees, you may also be charged a monthly statement fee, an annual fee, or a batch processing fee. These fees are typically much lower than the interchange and assessment fees, but they can still add up over time.
Now that you know the fees associated with credit card processing, you need to understand how they work. When you make a purchase using your credit card, the merchant will send a request to the credit card processor. The processor will then send a response back to the merchant, which will include the approval or decline of the transaction.
If the transaction is approved, the funds will be transferred from your account to the merchant’s account and you will be charged the appropriate fees. If the transaction is declined, you will not be charged any fees and the merchant may try to process the transaction again.
It is important to remember that you are not required to have a merchant account in order to accept credit cards. However, if you do not have a merchant account, you will likely be charged higher fees for processing your credit card transactions. In addition, if you do not have a merchant account, you may find it more difficult to find a processor that is willing to work with you.
When you are ready to sign up for a merchant account, be sure to shop around and compare the fees associated with different processors. You can also read reviews of different processors online so that you can get an idea of which ones are the best.
