DON'T GET OVERCHARGED FOR CREDIT CARD PROCESSING FEES!

Hey there! So, accepting credit cards is pretty much a necessity for any business these days, right? But, the cost of credit card processing can add up quickly. From merchant account fees to chargeback fees, it can be tough to keep track of what you're paying and why. In this article, we're going to break down the costs of credit card processing and give you some tips on how to avoid overpaying.

First, there's merchant account fees. This is the fee you pay to the company that sets up your merchant account, which is the account you use to accept credit card payments. Merchant account fees can vary widely, and they can include monthly fees, annual fees, and application fees. It's important to shop around and compare merchant account fees from different providers to make sure you're not overpaying.

Next, there's interchange fees. These are the fees that are charged by the credit card issuer, such as Visa or Mastercard, for each transaction. These fees are set by the credit card issuer and are not negotiable. They typically range from 1.5% to 3% of the total transaction amount. While you can't negotiate these fees, you can take steps to lower them, such as by encouraging customers to use debit cards, which have lower interchange rates.  It is important to note that "padding" the Interchange is a common practice. It's a good idea to have an expert look at it.  

Then, there's processing fees. These are the fees that are charged by the credit card processor, such as Square or PayPal. These fees can include transaction fees, statement fees, and gateway fees. They can also vary widely depending on the processor, so it's important to shop around and compare processing fees from different providers.

Finally, there's chargeback fees. A chargeback occurs when a customer disputes a charge on their credit card statement and requests a refund. Chargebacks can be costly for businesses, as they can result in not only the loss of the original transaction amount, but also additional fees from the credit card issuer. To avoid chargebacks, it's important to provide excellent customer service and to clearly communicate any policies, such as refund policies, to customers.

So, that's a quick overview of the costs of credit card processing. To sum it up, the key to avoiding overpaying is to shop around for the best merchant account and processing fees, encourage customers to use debit cards, implement a fraud prevention program, provide excellent customer service, use a payment gateway that supports multiple forms of payment, and utilize a merchant statement analysis service. 

Tips for Lowering Your Credit Card Processing Costs

1. Shop around for the best merchant account and processing fees.
2. Encourage customers to use debit cards, which have lower interchange fees.
3. Implement a fraud prevention program to reduce chargebacks.
4. Provide excellent customer service to reduce the likelihood of chargebacks.
5. Use a payment gateway that supports multiple forms of payment, such as credit cards, debit cards, and e-checks.
6. Utilize a merchant statement analysis service to ensure you are getting the best deal.