Credit Card Processing Fees

Banks and credit card companies say that interchange fees are simply the cost of doing business. However, merchants have started to notice wide discrepancies in charges pertaining to credit card processing for business – and those discrepancies could jeopardize their bottom line profits, especially if they are small businesses just getting started.

Interchange fees account for roughly 2 percent of every credit card purchase, but it can really add up for merchants with slim margins like supermarkets and convenience stores. Not only do interchange fees add up to a $48 billion a year industry, but Business Week urges us to think of it this way: Home Depot pays more in interchange fees than it pays for employee health care.

Why Charge Interchange Fees?

Credit cards make it easier for consumer-merchant interactions and it is a convenience that should come with a charge, say card issuers. After all, merchants benefit greatly from being able to accept credit cards: their risk of theft goes down, they save on the cost of transporting money to banks in armored vehicles, and record-keeping is easier. Furthermore, the money made through interchange goes toward credit card perks like fraud protection and rewards programs for consumers.

How Merchant Credit Card Processing Works:

Here’s the typical breakdown of interchange fees when a credit card is swiped through the machine:
  • 1.75 percent (the “interchange fee”) goes to the bank that issued the credit card.
  • 0.1 percent goes to Visa, MasterCard, Discover, or whoever the card issuer is.
  • 0.5 – 1 percent goes to the processor, which is where things get interesting.

Get The Cheapest Credit Card Processing By Choosing A New Service Provider

As you can see, processor fees have the widest range. It can be confusing how processors decide what to charge. For instance, they may charge a smaller fee for a food store, versus a clothing retailer. They might charge Home Depot less than Dibble’s Hardware. They might charge less for a credit transaction than a debit. They may also charge more for cards that offer special rewards like airline miles versus basic cards. Some charge fees that are considered “hidden” — annual fees, online account access fees, compliance fees and statement fees.
At Inmera, none  of these junk fees are added to your account. Most processors have a three-tiered system that can be extremely confusing for merchants. By contrast, Quantum Merchant Services offers straightforward pass-through credit processing with charges as low as 3 cents per transaction.  Merchant account service has never been so simple!


Contact:
Rob Olson
Quantum Merchant Services
7300 Hudson Blvd
Oakdale, MN 55128
1-888-881-0657 EXT 707






















Comments

Post a Comment

Popular posts from this blog

Clover POS Business Card Processing Solutions

Image
When is it time for a complete Point of Sale System like Clover? Point of sale system means different things to different people: it can be a glorified cash register, or an integrated system that joins sales, inventory, purchasing, and bookkeeping. If your business is still running on an old-fashioned cash register, odds are you could benefit from moving to a point of sale, or POS, system. A POS system is that it must work for you. It must meet your businesses needs and budget.  Most computerized POS systems today will have the following hardware A computer and screen, can be a touch screen if you are in the hospitality market Scanner Receipt Printer Cash Drawer Some newer system such as the Clover POS system come with apps that make it easy to build a system customized to your particular business. There are also other questions you can ask yourself such as: 1. Will the system grow with your business. 2. Are there different module that will need to be purc...
Read more

Card Processing Trends 2017

Image
Card Processing Trends 2017 Are we slowly moving into a cashless society? Some of the current and future trends may be pointing to yes.  Debit and credit card usage is up as well as the use of cryptocurrencies such as bit coin. At the time of this writing there are over 3 dozen (36) new cryptocurrencies currently trying to carve out an e payment niche.   Several different forms of electronic payments are slowly making it into the mainstream. Mobile Wallet usage such as Google Wallet, Samsung Pay, Apple Pay are also taking a slight chunk out of the pay with cash market. Why these different payment options are becoming popular is both simple and difficult to answer. On the easy side convenience and security.  Mobile wallets are primarily based on a device you more than likely always have with you, your phone. When utilizing your phone for mobile wallet payments you enjoy more encryption that is designed to keep your data safe. With sta...
Read more

Clover POS apps that can help you Manage your Business

Image
With so many apps being developed for Clover Point of Sale Time Clock management is just one of the many apps that can help you manage your business. Many day to day functions can be made easier with apps from the Clover App store. Just some of the current apps that are available for the Clover Point of Sale Systems . Shifts: Clover Complete POS The Shifts app allows employees to: 1. Clock In/Clock Out 2. Declare cash tips 3. Use restaurant "server banking" and calculate how much cash sales net of credit tips are due to the house 4. Print reports of their card and cash sales totals, tip totals, and time worked for that shift Managers/Admins can access shifts and print reports for all of their employees.    Notes: Managers can display a digital note on all their Clover devices. Say goodbye to sticky notes taped to register screens! Timesheets by Homebase: Homebase is a FREE tool to make managing your team’s schedule and time sheets fast and ...
Read more