While most business owners know that they must offer credit card processing in order to stay competitive in today’s market, many are still hesitant to jump on board. What is it that’s holding them back? There’s only one answer: credit card processing rates.
Credit card processing rates are notoriously steep and, unfortunately, they’re unavoidable. For every purchase you process on a customer’s card, you pay a percentage back to your processing provider. Put simply, it means you lose out on a small portion of your profits with each and every card you process.
It’s a difficult pill to swallow for many business owners. Fortunately, Total Apps can help. We aim to offer the most affordable credit card processing rates around, without cutting any corners on service, support, or security.
How Do Credit Card Processing Rates Work?
Credit card processing rates can work one of two ways. The first is called Interchange Plus. In this pricing model, you’re charged a set percentage of every transaction you process. This is usually offered to merchants with a high number of monthly card transactions. The second type of pricing is called Tiered Pricing. Under this model, you’re charged a percentage of every card you process, and that percentage is determined by the type of card being used.
While these are the basics of credit card processing rates, there are also a number of fees and charges that vary greatly from processor to processor. Some rates you can expect to pay include:
If you choose additional services, like leasing equipment, mobile processing, or point-of-sale software, you may also see extra charges on your monthly bill.
Credit Card Processing Rates Comparison
When looking to do a credit card processing rates comparison. It’s important to make sure you get a comprehensive look at all the costs you will be incurring with each provider you’re considering. This means you should get information on their rates, their fees, and any other charges you could possibly incur under a contract with them.
Don’t be fooled by too-low prices, either. Credit card processors are notorious for offering bargain-based rates up front in order to entice new customers. Then, once the contract has been signed, the customer sees their rates skyrocket. Prevent this from happening to you by making sure you ask about rates for today, tomorrow, and a year down the line. What can you expect? How often do they change? Do they offer you a lock-in rate? Take steps to ensure your rates aren’t going to change without notice.
Why Credit Card Processing Rates Are Worth It
While credit card processing rates may seem unnecessarily high, they are an integral part of having a successful business in this day and age. It’s rare for a customer to carry cash anymore, and checkbooks are nearly obsolete. In order to ensure you are appealing to the most customers, you absolutely need to offer card processing.
Credit cards offer an extremely fast and efficient way to manage purchases. This allows you to improve customer convenience and satisfaction, and it enables your employees to handle more transactions in a shorter amount of time. Both of these can make a difference on your bottom line.
Getting Help with Credit Card Processing Rates Comparison
Need help with your credit card processing rates comparison, or want assistance in finding the right credit card processor for your needs? Then contact Total Apps today!