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Online Payment Processing is Now Affordable

February 18, 2014 by · Leave a Comment 

Article Wirrten by : Be Better at Business
Although credit cards are the preferred payment method for consumers nationwide, many business owners still don’t accept plastic. This is especially true when it comes to small businesses. Why? There are many reasons; but the most common reason why merchants still don’t accept credit cards is because it’s expensive. According to many companies, it’s very expensive to accept and process credit cards both online and face-to-face. But times have changed. While this might have been true in the past, credit card merchant services provided by companies like Charge.com are becoming more affordable.

As a small business owner, it’s possible to find affordable credit card merchant services. Here’s a look at the many ways you can save when setting up a merchant account for online payment processing.

Low Processing Rates

When you’re researching merchant account providers, don’t go with just any provider. Instead, research various providers and compare rates. Look for a company that brags about low rates. For example, Charge.com Payment Solutions, Inc. offers some of the lowest rates in the industry.

No Hidden Fees

For a small business owner, the hidden fees can rack up and make it too expensive to accept credit cards. Starting with the application processing fee (which can be up to $300) to fees for online payment processing software, many merchant don’t advertise these fees up front. Instead of getting stuck with hidden fees, make sure to read the fine print and go with a company that has waved these fees or doesn’t charge them in the first place.

Understanding Merchant Provider Fees

January 22, 2014 by · Leave a Comment 

Small business understand that they’ll need to pay a fee for processing credit cards online or accepting them through a terminal. The merchant bank has expenses associated with performing the transaction along with a need to make money as a business. But many people don’t understand the nature of the fees associated with working with a payment gateway. This leads to confusion and — in some cases — people feeling like they are being “ripped off” by their merchant bank.

The reality is that the rates and fees that reputable banks like Charge.com Payment Solutions, Inc. charge their customers are very standard. Any processor will be able to explain these ahead of time and you can always find more information in your terms of service. Here’s a quick look at some of the most common credit card processing fees that businesses face:

Discount Rate: The discount rate is the amount of a total transaction that the merchant bank will keep before releasing the rest of the money to you. The amount of the discount rate can vary based on several factors. For example, high risk merchant accounts often have to pay a higher rate than businesses in more stable industries. You might also need to pay a higher discount rate if you accept certain types of “specialty” credit cards such as a “platinum” or “business” card.

Debit Rate: When a customer uses their card as a debit card, the merchant bank charges the business a different rate — usually smaller — than if they used it as a credit card. In some instances, merchant banks will not charge anything for PIN-based debit card transactions. However, make sure you check the terms of service if this is the case; in most instances, they are charging a higher discount rate on credit card transactions to make up the difference.

Transaction Fees: Along with discount rates and debit rates that are based on the total amount of the transaction, merchant banks also charge a transaction fee. This is a set amount that they will bill a business for each transaction they handle for them, regardless of size. The amount is usually $0.25 or less.

Monthly Fees: A merchant bank will also charge a monthly fee to its clients to handle account maintenance. These are things that the bank needs to do in order to ensure that the customer’s account works properly such as customer support costs, preparing monthly statements and network access fees.

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The preceding article was written by Charge.com Payment Solutions, Inc., a leading source for processing credit cards online or on site. Visit their site to learn more about setting up a payment gateway.

 

Volume Commitments for Small Business Credit Card Processing

January 18, 2014 by · Leave a Comment 

Before you enter into an eCommerce credit card processing agreement with any credit card processor, it’s important that you understand all of the details. It’s an unfortunate fact that many small businesses wind up stuck in lengthy contracts or are bound to clauses in their Terms and Conditions that end up costing them money. In some cases, this is because they simply didn’t read or understand conditions that were clearly spelled out ahead of time; in other cases, it’s because of hidden fees or terms.

One area where providers of credit card merchant services can sometimes trip up new small business customers is through volume commitments. This is a condition of a contract that requires the business to process a certain amount of money each month through sales handled through a credit card machine or through online credit card processing. If a company doesn’t reach the minimum processing amount, they may be subject to additional fees from the processor or they may even see their monthly rate go up.

If you run a small business or a business that has a wide fluctuation of sales from month to month, a volume commitment can be damaging. While larger businesses can use this volume commitment to ensure better rates or a higher level of service from a credit card processor, it will usually only cause headaches for small businesses and startups.

If you work with Charge.com Payment Solutions, Inc., you can take much of the hassle out of credit card processing. You can enter into a contract-free agreement for your credit card processing, meaning that you are free to walk away at any time.

Article written by Charge.com Payment Solutions, Inc.. Charge.com Payment Solutions, Inc. offers low-cost credit card merchant services to small businesses worldwide.