One of the main factors that influence your credit card processing fees is the business processing environment. If you conduct your business online or on the phone for example, your interchange fees will differ from those of a merchant who does business in-person.
The reason for this is that swiped transactions are more secure than keyed transactions. That’s why the rate for swiped transactions is typically lower than keyed ones. In a keyed transaction, the customer’s credit card information is entered manually. The customer is not required to present the physical card and can even provide this information over the phone. This payment method is more vulnerable to fraud than swiped transactions and the higher the risk, the higher your credit card processing fees.
Your total credit card processing fees are also affected by assessment fees per transaction, which are enforced by Visa, MasterCard and Discover. An assessment is a non-negotiable percentage set by the individual credit card brand. The rate not only varies by brand, but is susceptible to hikes.
The pricing model that you select for your business also affects your credit card processing fees and can depend on the volume of your business. If you do a high volume of credit card business, you can select an interchange plus pricing account that has only two distinct rates: a flat fee and a small transaction fee. The second type of pricing model relies on a tiered system, in which your business does not pay interchange fees directly, but rather through CardConnect™ Merchant Services’ own pricing rates.
At CardConnect™ Merchant Services, navigating credit card processing fees doesn’t have to be difficult. Our experienced professionals will gladly deliver the best rates to you based on these considerations and more. We’ll save you the time, money and headache.
In addition to years of industry experience, CardConnect™ Merchant Services offers lower processing rates, discounted fees and unique mobile functionality with Apple and Android devices.
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