Things That You Should Know About Your Credit Card Processing Fees
Credit card processing fees are inextricably related to online business. Standing in the 21st century, it is very important to understand the ecosystem of payment. Yes, with the advancement of technology, everything is getting a proper shape and the payment industry is not an exception. If we talk about the present situation, most people consider the online transactions as more efficient. Moreover, if we see the infrastructure of businesses across various industries, we will get to know that business owners are giving more preference to online businesses.
Well, credit card transaction is not a new thing but, considering the present situation where people are maintaining physical distancing, many small businessmen are adopting online businesses. We at International Payment Solutions are very happy to see the effort from these small business owners. They are doing their best to survive in this competitive market. But, when it comes to accepting card payments, there are many things that businessmen do not know. Most businessmen do not have a concrete idea regarding the credit card processing fees. Therefore, hesitation reflects when it comes to accepting online bill payment. We at International Payment Solutions understand this concern and therefore, we have come up with certain points regarding credit card processing fees that business owners should know. So, have a look at the following points:
Credit Card Processing Fees Are Different For Different Card Brands
Earlier, we have mentioned that the credit card transaction is not a new thing. People have been purchasing products with credit cards for years. But, if we talk about credit card processing fees, it is actually different for different credit cards. If the customers are paying with Privilege or Corporate or Premium credit card, the credit card processing fees will be on the higher side. But, if the customers are making online bill payments with standard consumer credit cards, the credit card processing fees will be on the lower side. Basically, the fancier the credit card is, the more credit card processing fees will have to be paid.
Here, we have made a brief breakdown of payment margin
Monthly Credit Card Volume
Keyed And Online
$0- $25,000 per month
0.30% + 8 cent
0.50% + 25 cent
$25001- $50000 per month
0.25% + 7 cent
0.45% + 20 cent
$50,001- $100,000 per month
0.20% + 7 cent
0.40% + 20 cent
$100,001- $250,000 per month
0.18% + 6 cent
0.35% +15 cent
$250,001- $1,000,000 per month
0.15% + 6 cent
0.30% + 15 cent
$1,000,001- 5,000,000 per month
0.12%+ 5 cent
0.25%+ 10 cent
$5,000,001 + per month
0.10% + 5 cent
0.20% + 10 cent
Registered Charities Have To Pay Low Credit Card Processing Fees
Well, if you are running a non-profit organization or a registered charity, you have to pay low credit card processing fees. However, you have to ask your merchant processor whether they have any special offer for charities or not. If you are using Visa or MasterCard, you will be able to avail of more benefits. Yes, MasterCard and Visa offer special credit card interchange rates for charities. But, not all merchant processor solutions will let you know about this. You have to ask them directly. Well, we at International Payment Solutions disclose everything to our merchants.
Credit Card Transaction Fee Depends Upon Monthly Transaction Volume
Well, you might be surprised to know that your credit card processing fees depend upon the monthly transaction volume of your business. Yes, the more you can process in your business, the less you have to pay. In other words, we can say that if you will be able to grow your business and set a rich customer base, you will be rewarded in the form of a low credit card processing rate.
Understand The Credit Card Interchange Rate
If your business accepts credit card payment, understanding the credit card interchange rate is very important. It is something that is issued by the credit card network such as Visa and MasterCard. Well, the credit card interchange fee depends upon the type of business you are running. However, it also depends upon the type of credit card you are accepting.
Online Transactions Is Costlier than In-person Transactions
If you are into online business, you have to understand the difference between card-present or in-person transactions and online transactions. The credit card processing fee for these two are different. In fact, an online transaction is costlier than in-person transactions. Yes, therefore, if you want to keep the credit card processing fees under control, you can ask the customers to make card-present transactions while purchasing anything from your business. Moreover, the risk of fraud is on a very lower side in the case of in-person transactions.
Not An IPS Merchant?
By now, you have probably understood everything that you should know about credit card processing fees. Now, if you want to elevate your business to the next level, you must pair it with a payment processor such as International Payment Solutions. Otherwise, you will not achieve fruitful outcomes. IPS offers advanced payment solutions that will surely be helpful for the growth of your business. So, what are you waiting for? Get in touch with IPS today.