Credit Card Processing Services
Confused About Your Merchant Services Fees?
Find out What You are Really Paying Your Processor in the Video to the Right!
Here is a very basic breakdown of the types of fees you will find on your merchant statement:
Interchange Fees:
These are the fees that the issuing banks charge the merchant. The interchange fees act as a sort of “interest on loan” for the card holders to buy now and pay 30 days later, a clear benefit for merchants. The bank associations set the rates for interchange fees. The issuing banks are carrying the liability for issuing credit cards. The merchant pays the interchange fees. The card holder pays additional fees if they carry a balance on their credit card longer than 30 days.
Brand Fees
These are the fees Visa, MasterCard, American Express and Discover charge.
Interchange Rates
These are the fees set by the banks who issue the credit cards. These fees are comprised a rate and a transaction fee depending on the risk associated with the card.
Example: Debit cards have little risk because they are coming out of a checking account and therefore have the lowest rates. Regular credit cards have a middle risk. Rewards cards are a bit higher risk than regular credit cards because somebody has to provide an airline ticket. The highest risk cards are corporate cards because they are used fraudulently more than the other cards.
Processor Fees
These are the fees your processor charges to service your account. The challenge lies in that these fees are not easily identifiable on your statement nor easily presented by most credit card processing salespeople. Get an honest evaluation with Electronic Money Company! We will break your statement down so you know exactly how much you are paying your processor for his service.
The challenge lies in that these fees are not easily identifiable on your statement nor easily presented by most credit card processing salespeople. Get an honest anlysis with Electronic Money Company! We will break your statement down so you know exactly how much you are paying your processor for his service.
5 Mistakes to Avoid When Choosing A Credit Card Processor!
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