A Federal Reserve’s 2018 press release on payments showed that US consumers made more than 120 billion card transactions in 2017. Card transactions refer to both credit and debit card payments. And as ecommerce becomes the order of the day, we expect to see more and more credit card purchases.
For micro-businesses, taking credit and debit card payments is not only an opportunity to sell to a new audience but also a challenge. The expensive cost of accepting credit card payments is a growing concern among merchants.
So how can you start taking card payments without ruining your financial bottom-line?
1. Learn More about Credit Card Transaction Fee Models
For transaction fees, there are three payment models
It is important to understand each model before you choose. Comparing differences by card type and card brand is essential in making an informed decision.
Other fees that apply, and that you should pay once include account creation fees and hardware purchase expenses.
Rented hardware (terminal) must be paid per month. Monthly or yearly fees may also apply depending on your service provider. Lastly, a PCI compliance fee as per the Payment Card Industry standards.
2. Compare rates
After learning all about credit card processing fees, it’s a good idea to review your existing plan. How much are you paying? Go through fee models in detail. Some models may look enticing but could cost you more in the long run.
If possible, discuss with your current service …Read More →