Shopping for merchant credit card processing means becoming familiar with contracts. You don’t need to read like an attorney to recognize when fees present too big a cost for your business, so learning to spot junk or hidden fees is crucial to finding a good processor to work with. Here is a brief guide that will break down what to look for in a contract.
Interchange Fees
One of the biggest sources of frustration when dealing with credit card readers is the interchange fee, which represents the amount a card issuer charges to process transactions. These fees vary, and that can lead to some confusion regarding transaction rates.
Visa and Mastercard charge variable rates, depending on which type of card the customer uses at the credit card terminal. If the customer uses a card that offers benefits, such as airline miles, the merchant should expect to pay more to process that transaction.
To clarify this confusion, make sure you read the contract carefully and call customer service when you have questions about what’s on offer.
Bad Sales Practices
Be wary of the introductory rate. Take the rate you’re quoted verbally with a grain of salt, as the salesperson will sometimes choose the lowest possible rate on your contract and try to pass that off as the rate you’re paying. First, this is deceptive sales and should be cause for concern. That said, reading the contract will cover you from the confusion of a higher bill for the service.
Charge.com Payment Solutions, Inc. offers affordable rates for credit card processing, accepting mobile payments, or accepting credit cards online.
