If you own or manage a business, you are probably interested in finding out how to pay the lowest credit card processing rates. You understand that in order to keep being competitive you must accept credit cards. Yet, you might realize how expensive a proposition that is and may be wondering who can offer you the lowest rates when it comes to credit card processing.
Sadly, there is not one easy or universal answer to that question. To the point that what turns out to be the cheapest option for one business may not turn out to be so for another. This is because there are several factors you must consider when selecting your best card processing service.
Why is it so complicated to find one credit card processing company that works best for everyone?
Mostly because there are not only many different providers but also, they offer different plan structures, fees, and rates. Add to that a difference between in-person and online processing and the picture becomes even more complicated. Ultimately, the best deal for your business will depend on your specific business, the way that you operate, and your needs.
How are these services priced?
There are several important pieces that play a role in the price you pay for accepting credit cards:
Processing Fees
These you know well as they are the fees you pay per credit or debit card transaction. These fees have three pricing structures: Interchange-plus, tiered, and flat rate.
Flat Fees
The most common flat fee is the monthly subscription that allows you to work with the processor. Other fees might include setup, cancellation, funds withdrawal, and more. Review your contract to find out which flat fees you are being charged.
Hardware and Software Fees
These are costs associated with the terminal that allows you to accept the cards. Online orders require a payment gateway while in-person purchases need a mobile card reader, a POS system, or a virtual terminal.
Top 5 Credit Card Processing Companies for Small Businesses
Square
As a payment service provider, Square offers flat-rate pricing with processing fees that start at 2.6% plus ten cents per in-person transaction. There is no monthly fee and you just pay for the hardware you need.
Fattmerchant
This merchant account provider offers interchange-plus pricing and 8 cents per transaction plus interchange for in-person transactions. Monthly fees go from $99 to $199 a month and you pay per terminal.
Payline Data
This merchant account provider also has the interchange-plus pricing option with transactions starting at 0.2% plus 10 cents plus interchange for in-person transactions. There is a $10 monthly subscription fee and a $25 monthly minimum transaction fee. Terminals are available for additional costs plus a $25 chargeback fee.
Payment Depot
This merchant account provider also offers interchange-plus pricing and processing fees start at fifteen cents plus interchange per transaction. Monthly fees start at $49 and terminals may come with additional costs.
Stripe
This payment service provider offers flat-rate pricing with 2.9% plus thirty cents per online transaction. There is no monthly subscription fee and extra tools are available for additional costs.
As you can see, this is a difficult decision for your business that can affect your bottom line. You may want to learn more about it at interchangepros.com.
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