Tips for not Paying Too Much Credit Card Processing Fees
Over the past couple of decades, the amount of transactions that are completed using credit cards has increased dramatically. With online shopping continuing to outpace traditional forms of shopping, the use of credit cards is likely to only continue to rise. While these forms of cards provide great conveniences to shoppers, and ultimately result in increased sales for businesses and retailers, many businesses are struggling due to the high credit card processing charges that come with a merchant account transaction.
Whenever a consumer uses a credit card to make a purchase, they will be charged for the exact dollar amount of the transaction, plus any applicable sales taxes that are paid. The business, on the other hand, will have to pay credit-processing fees to the credit card company. The fees that are paid are generally around two percent of the sale price, plus a low flat fee of around 15 cents per transaction. While this may seem like a nominal amount, these fees can add up to large sums of money over time.
Tip: Shop Around
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Merchant account services are a wonderful way of building your business. By accepting credit cards, you open up a whole new path for customers to buy your product or services. However, costs from merchant services can run high, therefore diminishing the profits from your sales. There are ways to sign up for an array of benefits from your merchant service account, and the cost can be free or nominal.