- U.S. consumers increasingly prefer credit card payments over cash.
- Optimize customers’ credit card payment experience takes in-depth research.
- Card providers, equipment, costs and fees top the list of credit card payment system priorities.
- This article is for merchants and small business owners looking for a more efficient consumer payment experience.
No matter what type of business you have, it ’ mho important to accept credit menu payments from your customers. Consumers prefer credit cards over cash payments by a significant margin. According to a 2020 analyze by the Federal Reserve, 27 % of U.S. consumers opted to use credit batting order payments, while 19 % favored paying cash. Every class, the Federal Reserve reports, the consumption of bank cards over cash expands. As you adjust to a new digital-based payment marketplace, weaning you off cash payments and pushing requital models to the credit wag english of the aisle makes good common sense – if, that is, you are prepared for the switch to increased plastic payments. Job one is choosing the right recognition menu payment service provider.
That choice can be debatable for your business, as there are hundreds of payment action companies to choose from and respective factors to consider before selecting a processor. You want to look for the best credit menu process company for your business, considering factors like broken rates, few fees and month-to-month contracts .
How to start accepting credit cards
If your business is new or not however accepting credit poster payments, you ’ re credibly wondering how to accept formative and how much it will cost. These steps will walk you through the process of setting up citation card processing for your business, and provide questions to contemplate.
- Decide which type of processor will be the best fit for your business. Should you work with an aggregator, a merchant services provider or a direct processor? How do you know which type of credit card processing service you need?
- Identify how you plan to accept credit cards, and evaluate equipment options. Do you plan to accept credit cards online or at a brick-and-mortar store, or do you prefer a mobile credit card processing solution that uses a smartphone and a card reader? Do you want to accept payments multiple ways?
- Learn about credit card processing fees and pricing models. This helps you know what to look for, and whether you’re getting a good deal or paying more than you should.
- Call three or more credit card processing companies for pricing quotes. Many service providers customize their rates for each client, so you need to figure out a good deal for your unique business. You also need to know what information you should never give a sales rep until you’re ready to sign up with a processor.
- Read the contract before you choose a processor. Find out which terms are negotiable, where to find hidden fees and when you should look for a different option.
- Apply for a credit card processing account. Once you’ve decided which payment processor you want to work with, it’s time to apply for a merchant account.
Tip: If you plan to use a point-of-sale system to accept credit cards, see our reviews and recommendations for the best polonium systems .
1. Decide which type of processor will be the best fit for your business.
There are multiple ways to integrate a accredit batting order payment service into your unique business. For exemplar, you ’ ll want to choose between a poster payment service that works with individuals or choose for a supplier that serves only businesses. additionally, you ’ ll motivation to factor in the average monthly book of credit and debit poster payments that you accept. To get the job done right, start by evaluating the following accredit tease payment processing solution models .
If you ’ re an individual who wants to accept credit cards for personal function – for example, if you want to accept credit cards at a garage sale or for freelance work, or if your business international relations and security network ’ triiodothyronine yet official – Square is a adept choice. ( Read our review of Square for more information. ) Square is one of the few payment processors that works with you individually and works with your occupation. You will pay a humble tip each time you accept a credit poster payment, and there are no monthly or annual fees. Square gives you a circuit board swiper, or you can buy an cheap chip menu reviewer from the company. If you desire the ability to accept accredit card payments from friends, syndicate, or other people you know and trust – such as the friends you split the circular with at dinner last night – you can use peer-to-peer payment services like PayPal ( see our PayPal review for more information ), Venmo, Apple Pay Cash, Google Pay or Zelle. Tip: You don ’ thyroxine want to use a P2P requital service to accept payments if you don ’ thymine know the individual. Beware that buyers can reverse transactions, such as in Venmo payment scam .
Small, monthly cash amounts
If your humble occupation processes less than $ 2,500 per month or has little sales tickets, you want to work with a payment facilitator like Stripe ( read our Stripe revue for more information ). Facilitators like Stripe are cheaper to use at this processing volume because you pay only a little fee – expressed as a share of each sale and, sometimes, a per-transaction fee – for each credit or debit card payment you accept. even though payment facilitators charge a higher percentage than early types of payment process rates, you save money because you don ’ triiodothyronine pay any early fees. There ’ s no setup fee, monthly fee ( such as statement and payment gateway fees ), or annual PCI submission fee. Tip: Consider PayPal alternatives if you ’ rhenium looking for low-volume credit tease payment processors.
payment facilitators – besides called mobile credit card processors or merchant aggregators – sponsor multiple merchants under their master merchant accounts. This makes it easier to sign up for an account, and there are fewer fees to pay, but they can be more restrictive. Make sure to cautiously read the user agreement to ensure the goods or services you provide aren ’ deoxythymidine monophosphate prohibited. additionally, be aware that processing irregularities – such as abnormally large transactions or a sudden spike heel in monthly volume – may cause your card processor to freeze your funds, which can restrict cash flow. Key takeaway: If you have belittled sales tickets, you can save money by choosing a recognition card processing party that charges only a percentage of each sale. Some besides charge a small per-transaction fee – normally 10 to 30 cents – but this adds up promptly if your sales tickets are humble .
Larger monthly sums
If your little business processes more than $ 3,000 per month or has big sales tickets, consider a central processing unit with lower rates like Payment Depot ( read our inspection of Payment Depot ). These requital work companies can install a merchant account for you. even though these processors may charge fees that the aggregators don ’ triiodothyronine, they offer lower rates, which saves you money when you ’ rhenium march larger sums of money every calendar month .
ISOs and MSPs
freelancer sales organizations ( ISOs ) and merchant service providers ( MSPs ) that resell merchant accounts from direct processors offer credit card requital options for your small commercial enterprise, besides. Because you ’ re still processing a lower payment volume than bombastic businesses, you ’ re not likely to get better rates from target processors. even then, you ’ ll want to shop around to find first gear rates, few fees and a month-to-month contract. Tip: If you process a low book of credit cards each calendar month, look for a payment processor that doesn ’ t impose a monthly minimum – a minimal dollar sum of credit batting order serve fees you must generate each calendar month. If you process a high volume of sales each month, you could besides consider working with a directly processor like First Data, Wells Fargo Merchant Services or Bank of America Merchant Services. These companies tend to be good suited for large businesses, but they will besides work with your minor caller. lead processors provide merchant accounts, and have relationships with banks and credit card brands. Again, you ’ ll want to comparison patronize for friendly rates, fees and contracts .
If you are looking for a point-of-sale organization ( POS ), check with the company to find out which credit wag processors the POS system is compatible with, as that may limit your options. Some require you to use their in-house march services, but the best credit circuit board merchants allow you to work with third-party payment processors so you can shop around for depleted rates and fees .
2. Identify how you plan to accept credit cards and evaluate equipment options.
You ’ ll want to accept credit wag payments wherever and however customers want to pay. That ’ s the event no matter what character of citation card transaction you accept, including : in person at your business or another localization, on-line, over the telephone and through fluid apps. once you decide how to accept credit rating cards, address what kind of credit rating batting order serve equipment you ’ ll necessitate. The best serve equipment will meet these standards .
EMV chip cards
All tease readers can accept magnetic stripe cards, but you want a model that can accept EMV chip cards ( Europay, Mastercard and Visa microchip batting order payments ). EMV menu engineering protects you from indebtedness for fraud occurring at the point of sale. EMV calling card readers besides allow you to skip signature authentication, which can speed up the checkout process. ideally, the batting order reader will besides have NFC technology, which allows you to accept mobile wallets like Google Pay and Apple Pay. This direction, you won ’ triiodothyronine have to upgrade your equipment again as this payment method acting becomes more democratic. about every credit wag processor sells processing equipment, and in most cases, you ’ ll perplex at least your card reader from the company. If you already own a terminal, the central processing unit may be able to reprogram it, though there is sometimes a fee for this service. If you want to buy peripherals from a third-party seller, you ’ ll need to check with the processor for compatibility .
Upfront payment methods
design to buy your credit circuit board requital processing equipment upfront, as installment plan payment models can escalate in price. One merchant signed a lease for $ 99 per calendar month with a 48-month term for a machine – in consequence, paying $ 4,800 for a car that costs $ 300 to purchase. The FTC cautions against leasing credit rating card march equipment for the like high-cost reason .
Be wary of free credit circuit board process equipment, as you may be charged higher rates and extra fees – such as an insurance tip or some sort of equipment maintenance tip. Most payment providers besides require you to return the equipment when you close your explanation. With those tips in beware, let ’ s analyze respective solid credit card payment serve hardware and technology options .
Mobile credit card reader
This is a portable device you use with a smartphone or tablet and a credit rating wag payment app. Some models plug into the earphone jack or lightning connection on your call or pill, but many newer models connect via Bluetooth. many processors give customers a free credit card swiper, but you should upgrade to a model that accepts EMV chip cards and NFC contactless payments. These normally price less than $ 100. Mobile batting order readers can be used as stand-alone devices or as separate of a larger system. You could utilize these if your company accepts recognition cards on the go. They ’ re besides utilitarian to process transactions from anywhere in the memory during interfering seasons, or if your company only runs a few transactions each day.
Credit card terminal
This type of card reader frequently has a built-in receipt printer and computer keyboard for PIN debit transactions. Countertop models connect via dial-up or Ethernet. Wireless models connect via Bluetooth, Wi-Fi, 3G or GPRS. All new models are EMV compliant so that you can accept chip cards, and most have NFC technology to accept mobile payments. Credit batting order terminals normally cost between $ 150 and $ 600. payment terminals are the most common character of processing equipment. They would be ideal for your business should your firm need a wag lector to connect to or work aboard a POS system, or if you don ’ t need the credit circuit board action system to do anything but accept payments .
This is a complete check station that typically includes software, a pill or touch screen, a poster reader, cash drawer and acknowledge printer. Some systems have built-in circuit board readers, while others connect to or are used alongside a credit tease terminal or mobile credit card lector. You can add barcode scanners and other peripherals. available for purchase from merchant account providers or POS companies, POS systems ’ pricing depends on the type of system you choose. Tablet-based systems that work with third-party hardware are normally the least expensive. These systems are best for your company ’ s physical location, particularly if you want to connect to other business software. Review our best accounting solutions for software recommendations to consider .
If you want to accept credit cards online – for model, if you sell goods or services through your web site or an e-commerce platform – you need a requital gateway. Most credit rating circuit board processors can set you up with this technology and help you connect it to your locate. Some processors have proprietary payment gateways, and others set you up with a third-party gateway like Authorize.Net.
There ’ s normally an extra monthly fee for this overhaul, and some processors charge a gateway setup fee and another per-transaction fee. Editor’s note: Looking for information on credit card processors? Use the questionnaire below and our vendor partners will contact you to provide you with the information you need.
3. Learn about credit card processing fees and pricing models.
Credit card march fees can be confusing, and it ’ s beneficial to fully understand credit wag payment fees. This will help you negotiate the best transaction rates for this type of avail. These are the three common types of citation batting order action fees : transaction, service and incidental fees .
- Transaction fees (or rates): These are the fees you pay for every transaction. They’re usually expressed as a percentage of the sale plus a flat fee for each exchange. For clarity, we refer to these fees as rates. Processors have different methods of calculating and charging these rates – also known as pricing models – which can make it tricky to figure out what you’ll actually pay and whether or not you’re getting a good deal.
Tip: Read our review of National Processing to learn about the credit card processor with the lowest transaction fees .
- Service fees: These are monthly and annual account maintenance fees, such as statement fees and PCI compliance fees. They can also be standard fees, but the best credit card processors don’t charge service fees.
- Incidental fees: These are fees that you’re charged on a per-occurrence basis; they’re triggered by certain actions on your account, such as chargebacks. These are also standard, but some credit card processing services may not include them.
The three most common price models are flat-rate, interchange-plus and tiered price. here ’ s how each option works, along with information on which pricing model is best for your business type and size .
Flat-rate pricing is normally charged by payment facilitators like Square and PayPal. There are different rates based on how you accept your customers ’ credit and debit cards. This is the simplest price model. here ’ s an example of flat-rate price using PayPal ’ randomness transaction fees :
- Card present: For cards that you accept in person using a chip card reader or a magstripe card reader – either in-store or on mobile – you pay 2.7% of the transaction. This is the lowest rate because this payment method has the lowest risk of fraud.
- Card keyed in: If your customer’s card doesn’t work and you have to key it in, or if you accept a payment over the phone and key in the card info, you pay 3.5% plus 15 cents for the transaction. This method is more expensive because you don’t use the physical card to process the transaction, so there’s an increased risk of fraud.
- Card online: When you accept an online payment – through your website, a payment page linked to your website, or an electronic invoice – you pay 2.9% plus 30 cents. This method costs more than the card-present method because it’s a remote transaction. However, this method is cheaper than the keyed-in rate because it requires your customer to supply additional verification information – such as the CSV number and their address.
Interchange-plus may be the best choice for your occupation. diligence experts recommend interchange-plus pricing because it ’ s more crystalline than the other price models : it reveals precisely how much of a markup you ’ re paying the serve provider. exchange fees are set by the batting order associations – or card networks – that pay the banks involved in the transaction for moving money from your customer ’ s recognition card report to your company ’ s bank account. There are hundreds of exchange rates, depending on the type of circuit board and the trade name. The circuit board networks charge a small fee for each transaction. These rates are the same for every central processing unit – regardless of whether they ’ re a payment facilitator, ISO or MSP, or direct processor – and they ’ re nonnegotiable. The only arguable part of a transaction rate is the central processing unit ’ s markup. With this model, the processor passes on to you the exchange rates and card association fees charged by the credit calling card networks – Visa, Mastercard, Discover and American Express – and adds a markup share and per-transaction fee. When you receive a quotation for this price model, it ’ s entirely the processor ’ randomness markup share and per-transaction fee that you ’ ll be charged. so, for each transaction, you ’ ll give this come on top of the interchange pace. hera ’ s an exercise of interchange-plus pricing, using Helcim ’ s transaction fees. When you accept a credit circuit board payment in person using an EMV chip batting order lector or a swiper, these are the rates you ’ ll wage :
- Processor’s markup: 0.25% plus 8 cents. This is the rate you’re quoted when you ask for interchange-plus pricing. This is the only negotiable portion of this rate.
- Interchange rate: 1.65% plus 10 cents. This is an example of what it might cost to process a retail transaction using a Visa Rewards credit card.
- Card association fee: 0.15% plus 2 cents. This is the fee that Visa charges for credit card transactions.
consequently, for this transaction example, the broad rate would be 2.05 % plus 20 cents. Did you know? The best processors offer interchange-plus pricing to all their customers and post their rates online. But most of the time, you have to specifically ask for it, and you may need to jump through hoops to qualify for it – such as processing a certain volume of sales each month or working with the company over an extend period .
Tiered pricing can be a full option if your customers typically pay in person using regular debit cards, though it can be expensive if they prefer to use agio rewards, corporate or international credit cards. Most processors prefer this pricing mannequin, but industry experts advise against it, as it ’ s less crystalline than others .
- There’s no way to know exactly what the processor’s markup is, as each processor sets its own tiers and decides which interchange rates fall into each tier.
- Most processors don’t post tiered rates in full online. Instead, they advertise teaser rates that apply only to regular debit cards accepted in person. Many sales reps don’t disclose how many tiers, the pricing for each tier, or what types of cards and transactions are included in each tier unless you specifically ask for this information – leaving you with a surprise when you get your first bill.
- Transactions can be downgraded for various reasons, resulting in higher rates than those you were quoted. When you call for a quote, ask which actions can cause a transaction to be downgraded.
This list of credit circuit board requital processors was made from Business News Daily ’ randomness best credit card processing providers :
Tip: When you call for a quotation mark, ask for interchange-plus rates. Otherwise, be certain to ask how many tiers there are, the rate for each tier, and which types of cards and toleration methods are grouped into each tier. There are normally three tiers : qualified, midqualified and nonqualified. Some only have two, though, and there may be branch tiers for debit and credit cards. In addition to process rates, most full-service credit card processors charge an assortment of fees to maintain your report and provide customer documentation. requital facilitators don ’ thyroxine typically charge these fees. Before you sign a march contract, be certain to read it and make surely you ’ rhenium mindful of all the fees that the processor charges indeed you won ’ metric ton be shocked when you get your inaugural bill. here are the most common service fees :
- Monthly fee: Also called a statement fee, this covers the processor’s cost of preparing monthly statements and customer service. It usually costs $5 to $15. It may be higher if it includes a gateway fee and a PCI compliance fee. If you choose to receive paper statements by mail, there may be an additional cost.
- PCI compliance: This fee is usually charged annually and costs around $100, though some processors either include it with the monthly fee or charge it quarterly. For this cost, service providers help you certify that your business complies with PCI guidelines. If you fail to establish your compliance, you’re charged an expensive PCI noncompliance fee each month until you are certified. Some processors offer to waive this fee for the first year when you sign up for an account. Payment facilitators are PCI compliant, so their clients don’t have to certify and pay this fee.
- Gateway fee: If you accept payments online, you need access to a payment gateway. Usually, this fee is charged monthly and costs about as much as the monthly fee, but some processors also tack on a small per-transaction fee.
- Monthly minimum: If you process a low volume of transactions each month, you want to look for a provider that doesn’t charge this fee, as it’s normally calculated against the processing fees you generate – not the full dollar value of each transaction. Usually this minimum is $25, though some processors set it higher. Be sure to ask the dollar amount that you need to process each month to satisfy this requirement.
- Incidental fees: Some fees are only charged when certain actions have taken place. For instance, if a customer initiates a chargeback, you will need to pay a chargeback fee. If you use the processor’s address verification service (AVS) or call its voice authorization center as fraud-prevention checks before you process a transaction, you pay a small fee. Again, be sure to read the contract in full before signing up with a processing company, so you know precisely what fees to expect.
4. Call three or more credit card processing companies for pricing quotes.
The best credit tease processor for your business is the one that offers you the best value – with low and guileless rates, no hidden fees, and either a month-to-month abridge or pay-as-you-go service. Though many of the best credit batting order service providers post their price on-line, some don ’ thyroxine, preferring to customize their rates for each client. You should plan on calling at least three processors, and requesting price quotes and a contract to review, so that you can compare rates and fees for your specific business. evening if all top credit calling card processors on your list post their price on-line, it ’ s a adept mind to call and speak with a sales rep because there may be a promotion available, or you may be able to negotiate a better deal. It besides gives you a taste of the company ’ second customer service quality, which can be an important consideration as you ’ re choosing a service supplier .
5. Read the contract before you choose a processor.
No one wants to read the contract before signing up for a avail, but with this diligence it ’ mho necessary. If you sign up with a full-service processor, you risk being locked into its services for respective years, paying more than you expected. If you sign up with a payment facilitator, you may find out besides late that it has certain processing limits or doesn ’ triiodothyronine support businesses in your industry, resulting in frozen funds or a closed report. The best recognition card action companies provide their services on a month-to-month or pay-as-you-go basis, and don ’ thymine charge any early end point fees .
Used by ISOs, MSPs, and target processors, standard contracts typically have three parts : the lotion, the terms of serve and the program guide. Some applications have links to the terms and scout, but most frequently, you ’ ll want to ask the sales rep to send these documents to you individually .
- Application: Usually, this form includes credit card processing rates and some fees. It asks for your bank information, Social Security number and signature. Don’t provide personal information until you’re ready to sign up for an account, have read the contract in full, and have verified that the rates and terms are correct. Most contracts include a personal guarantee that allows the processor to collect money from you directly if your business can’t pay its processing bills, and allows it to perform credit checks on you.
- Terms and conditions: This document describes the length of the term and additional fees that your company may incur. Most have three-year terms, and automatically renew for one or two additional years if you don’t cancel in writing within a 30- to 90-day window. One clause to watch out for is “Additional Services.” Note that it doesn’t explain exactly what these additional services are or what they cost, but does mention that you have a short window – usually 30 days – to opt out if you don’t want these mystery services and fees.
- Program guide: This is where you’ll find cancellation instructions and the fees that apply if you decide to close your account. Sometimes processors don’t provide the program guide up front, and if you don’t ask for it, it will be tucked in with the processing hardware you order. If you sign a standard contract and then need to cancel your account before the end of the term, you will be charged a steep early termination fee for hundreds of dollars. Some long-term contracts also have liquidated damages clauses that can cost you even more money. Sneaky processors may claim not to charge early cancellation fees, but instead charge early termination fees (ETFs), early deconversion fees (EDFs), exit fees or lost profit fees.
Key takeaway: If the processor you are considering has a drawn-out contract, ask your sales rep if month-to-month terms are available. besides, request to waive the early on ending fee and any liquidate damages .
Most payment facilitators have drug user agreements alternatively of contracts. These are much shorter, but still important to thoroughly read. You want to check the tilt of prohibited goods and services to ensure the processor will work with your clientele. You besides want to read the process contract terms to find out if there are any processing limits, to make sure they won ’ metric ton affect your business. One factor to keep in mind is that aggregators are very risk-averse and will freeze your funds if there ’ s anything about your transactions that looks fishy, such as a sudden spike in book or transaction size .
6. Apply for a credit card processing account.
This is the easy partially ! once you ’ ve decided which requital central processing unit you want to work with, and have read the contract to verify that the rates and fees match what you were quoted, it ’ mho fourth dimension to apply for an bill. When you sign up for a merchant account with an ISO, MSP or lineal processor, you fill out the application fortune of the narrow. This is often on-line, but many sales reps are happy to walk you through the application over the phone. You provide details about both your business and yourself, including your employer ID, Social Security count and savings bank report information. The processor then reviews your lotion and sets up your history. This normally takes up to two days ; some processors can get it done the lapp day you apply, while others take up to a workweek. Your sales rep can help you decide what processing equipment you need and any extra features – like endowment cards and commitment programs – are needed. once your equipment arrives, the central processing unit will help you set it up and test it to make surely it works by rights, and ensure you know how to use it. If you sign up with a requital facilitator rather, the serve is very easy. You fill out an on-line form to create your score by entering some brief information about yourself and your business. then, you can ordering work equipment and download the app onto your call or tablet .
Frequently asked questions about credit card processing
What is credit card processing?
Credit circuit board process is a series of actions that securely move money from a customer ’ south credit card account to your ship’s company ’ s bank account. It takes multiple parties to do this – credit batting order companies, banks and processors – and each of them takes a helping of the transaction fees you pay the processor in exchange for their services .
How does credit card processing help my business?
Credit card action helps your business by offering your customers more requital options. With it, you can accept all major recognition cards and debit cards. With a new credit rating card reader, your commercial enterprise can accept payments using contactless cards and mobile wallets, such as Apple Pay and Google Pay .
What are the benefits of credit card processing? Can’t I just accept cash?
You could good accept cash – and some businesses do – but you risk losing business from customers who prefer to pay with credit rating and debit cards. According to the Federal Reserve ’ south 2018 report on the Diary of Consumer Payment Choice, 30 % of all transactions are paid in cash, 27 % using debit cards and 21 % recognition cards. Of naturally, these numbers shift depending on the dollar measure of the transaction, the type of business you have and your customers ’ senesce .
What is a merchant account? Do I need one?
ISO, MSPs and calculate processors can set you up with a merchant report and a merchant ID ( MID ). They then act as the liaison between your business and your customer ’ s recognition batting order company or bank. They process payments and make certain the money is appropriately withdrawn from a credit card account. Once the money clears all of the processing protocols, it can be transferred to your company ’ s bank bill. payment facilitators set you up as a submerchant under their merchant report. The professional of this placement are that it ’ randomness identical slowly to set up your bill, the company takes care of PCI complaisance, and there are normally no monthly or annual fees. The cons are that there are more restrictions on your account, the processor won ’ thymine bring with certain commercial enterprise types and there are limits on how much you can process. If you process more than $ 100,000 a class, you ’ ll be required to get your own merchant report .
How does credit card processing work?
When your customer inserts a card into the recognition poster reader, the data on the card and a request for payment is securely transmitted between the processor, the credit calling card network and the depository financial institution that issued the card. The bank that issued the card authorizes or denies the payment request, and the data is transmitted back through the credit batting order network, the central processing unit and the merchant bank. At the end of the day, the merchant batches its transactions and the datum again travels through these channels to debit the customer ’ s credit tease for the total of the transaction, and deposits the funds into your business deposit explanation .
What are the best ways to use credit card processing?
The best way to use credit card process is to accept payments across every channel your customers want to use – whether that ’ randomness in person at your forcible business location, using a mobile device if you ’ rhenium working offsite, or taking payments online through your web site or electronic invoices. Depending on how your commercial enterprise works with customers, you may need to utilize multiple adoption methods .
What kind of cost should you expect for credit card processing?
No topic which type of central processing unit you work with, you ’ ll pay transaction fees for every calling card requital you accept. If you work with a full-service processor, you ’ ll besides pay a variety of early fees .
What is the average fee for credit card processing? What kinds of fees come with credit card processing?
For each transaction, you ’ ll wage a share of the sale ( normally 2 % to 4 % ) and frequently a per-transaction fee ( normally 10 to 30 cents ). If you work with a requital facilitator, there normally aren ’ t any other fees. But if you want your own merchant explanation, you ’ ll have account service fees – such as a monthly fee, gateway fee and an annual PCI complaisance fee .
How much are credit card fees for merchants? For customers?
It depends on several factors, such as the types of cards your customers use and how you accept them, the central processing unit you work with, and the model it uses to calculate your fees. Most processors prefer to use the tiered pricing model to calculate your process costs, but industry experts recommend the interchange-plus price model, as it ’ south more transparent. You ’ ll want to ask which pricing model the caller uses when you call for a quotation mark.
Customers don ’ deoxythymidine monophosphate normally pay credit card fees directly. Most of the time, you can include this expense in the prices you charge customers. Although it ’ sulfur legal in most states to add a surcharge when customers pay by credit batting order, or to set a minimal purchase necessity, it annoys customers .
What kind of equipment do you need for credit card processing?
The type of equipment you need depends on how you plan to accept cards. If you have a countertop checkout place in your brick-and-mortar location, you ’ ll need a credit card terminal. If you plan on using a POS system, check with that provider before choosing a processor to make sure you choose one that ’ south compatible. If you want a mobile credit wag processing solution, you ’ ll need a citation menu proofreader that either plugs into your call or tablet, or connects via Bluetooth. Brian O’Connell contributed to the reporting and writing in this article.