![]() How to get the lowest credit card processing fees The only negotiable part of a credit card processing fee is the processor’s markup. All processors pay the same interchange rates and assessment fees. The card networks set the interchange rates and assessment fees, and the credit card processing companies determine their markups. Who determines credit card processing fees? Fees are what you pay the processor to maintain your account, including flat fees and incidental fees.Ĭard brand (Visa, Mastercard, Discover, American Express)Įditor’s note: Looking for the right credit card processing service for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs. Rates are what you pay every time a customer makes a purchase from you with a credit card. When you contract with a credit card processor, you typically pay two sets of costs: rates and fees. What’s the difference between rates and fees? Incidental fees: These are fees that the payment processor or merchant account provider only charges in response to specific actions, such as chargebacks.įYI: Credit card transaction rates usually total 2% to 4% of the purchase amount.Flat fee: This is a set amount you will pay, usually monthly, to the merchant account provider and, if applicable, the payment gateway.It includes the interchange rate, assessment fee and payment processor markup. It is a percentage of the purchase amount, called the discount rate, and sometimes also a flat per-transaction amount. Transaction rate: This is the fee you pay every time a customer buys from you with a credit card.There are three main types of fees: the transaction rate, the flat fee and incidental fees. Fees vary by provider, so it pays to inquire about all of the fees and to shop around to ensure you are not overpaying. Other types of fees only apply in the event of a particular action, such as a chargeback. Some of these fees depend on the total dollar amount of the purchases, and some are based on the number of transactions. You will need one of the best credit card processors, a top merchant account provider and, if you have an e-commerce business or accept payment by phone, a payment gateway. These services work together on different parts of the transaction, and each of them charge some kind of fee. In order to accept credit cards, you will need to get several different services. Understanding these costs will help you choose a processor with the best rates and lowest fees. Credit card processing companies charge various fees, including some you should never have to pay. To get the best possible pricing for your credit card processing service, you need to understand the different pricing models that processors use and how they work. ![]()
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