How to Find the Lowest Credit Card Processing Rates
Merchant accounts can seem perplexing for new merchants. The period of shopping around for the right provider is often marked with frustration. Despite everything that needs to be learned and understood about merchant service providers, it’s worth the benefit of having credit card processing for your business. By keeping in mind the following simple rules, you could easily land some of the lowest processing rates in the industry.
Learn the Lowest Rates Before you Start Searching
Every year in April and October, interchange fees are published by Visa and MasterCard. Interchange fees are what credit card processors pay to the issuing banks of cardholders. Basically, the lowest cost provider is actually the one who charges the lowest markup.
Understand the Pricing Methods of Interchange
Customers often get confused by the rates of interchange fees, but there are basically three different models: interchange plus, enhanced recover reduced, and tiered. Providers that use interchange plus are the easiest to compare, because the model is based on markups of fully disclosed interchange fees. The other two models are more difficult, because the interchange categories are never revealed on merchant statements.
Look for the Lowest Interchange Fees
Low rates and minimums are both important features, but it’s crucial to know about the rising nature of interchange fees in order to save money. Inevitably, you will have many circumstances where you will wind up keying in card numbers instead of swiping the actual credit cards, either because of faulty magnetic strips or verification failures. Due to the elevated risk of such transactions, interchange fees are applied to cover the difference.
Examine the Overall Value of Each Deal
Many novice merchants fixate on discounts when signing up for a service, all the while missing the smaller charges listed in the finer print – charges that add up over time. Another mistake is to focus on the interchange fees while losing sight of all other costs, such as monthly minimums and transaction fees. Even if a company offers super-low rates, it doesn’t necessarily make that company one of the best providers – cheap sometimes equates to poor service. Therefore, it is important to examine all the details before signing on with a merchant services provider.
Landing the right merchant services deal is far easier when you speak with agents who can walk you through the process. Here at Capital Bankcard (CB), our staff is here to answer questions 24/7 on anything pertaining to merchant accounts. Call CB today to find out more about the lowest rates and best services in the credit card processing business.