Lowest Credit Card Processing Fees 2020
As a business owner, you know that accepting credit card payments is essential. However, credit card processing fees can sometimes be a burden on your company’s finances. That’s where finding the lowest credit card processing fees becomes crucial.
In this article, we’ll talk about ways to get the lowest credit card processing fees and how you can save money. So stay tuned!
What are credit card processing fees?
Credit card processing fees are the charges that merchants pay for accepting credit card transactions. These fees are usually a percentage of the transaction amount plus a fixed fee for each transaction. Credit card processing fees can significantly impact a company’s revenue, especially for small businesses. It’s essential to understand the different types of credit card processing fees that merchants encounter.
The different types of credit card processing fees
There are several types of credit card processing fees that merchants incur:
- Interchange fees
- Assessment fees
- Markup fees
Interchange fees are charged by the credit card issuer to the card processor to cover the cost of processing the transactions. These fees are typically based on the card issuer, the type of card, and the transaction amount.
Assessment fees are charged by credit card networks like Visa, Mastercard, and Discover to cover operational and processing costs. These fees are typically a percentage of the transaction amount.
Markup fees are added by the credit card processor or payment gateway to cover their costs and profit. This fee is usually a percentage of the transaction amount plus a fixed amount per transaction.
How to get the lowest credit card processing fees
Now you know the different types of credit card processing fees. Let’s talk about ways to get the lowest credit card processing fees.
1. Negotiate with your payment processor
The first and most crucial step in getting the lowest credit card processing fees is to negotiate with your payment processor. If you’re a high-volume merchant, you have more leverage to negotiate for lower fees. You can also shop around and compare fees between different payment processors to find the one with the lowest rates.
2. Optimize your payment processing setup
You can also optimize your payment processing setup to reduce your credit card processing fees. Here are some ways to optimize your payment processing setup:
|Use the correct merchant category code (MCC)
|Using the correct MCC code can help you avoid paying higher interchange fees.
|Update your payment equipment
|Upgrading your payment equipment can help you qualify for lower transaction fees and reduce the risk of fraud.
|Use address verification service (AVS)
|AVS can help reduce the risk of fraud and reduce your markup fees.
3. Choose the right payment processor
Choosing the right payment processor can also help you get the lowest credit card processing fees. Here are some features to look for in a payment processor:
- No hidden fees
- No long-term contracts
- No cancellation fees
- Transparent pricing
- Predictable fees
- 24/7 support
In conclusion, credit card processing fees can be a significant expense for businesses, but there are ways to get the lowest credit card processing fees. By negotiating with your payment processor, optimizing your payment processing setup, and choosing the right payment processor, you can save money and improve your bottom line. Don’t let credit card processing fees eat into your profits!
Thank you for reading! See you in the next article.
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