Credit card processing fees is one of the most important facets of business payment processing and may sound confusing to new business owners at first. However, the factors that determine the rates you pay for processing a credit card transaction are straightforward and easy to understand. It is also possible to get the lowest credit card processing rates for your particular business. But that needs some basic understanding of the components of cost, types of fees, and pricing models. When you know what these terms mean, you will be able to assess which credit card processor gives you the best possible rates.
There are base costs and markups that together determine the rate you pay for a credit card transaction to take place. Usually base cost is much higher than the markup but in some cases and you have to remember that base cost is not negotiable. This means that all processors give you the same rate when it comes to base costs, which are made up of interchange and assessment fees. However, markup is the parameter that keeps fluctuating and can be controlled under special circumstances.
Pricing model, amount, and types of fees are the factors that determine the markup and therefore it differs from one payment processor to the next. Two types of pricing models have been recognized so far and these are interchange plus and tiered. There are usually two types of credit card processing fees: flat fees or transaction fees. These are determined by the volume of transactions. The volume fee is different for each pricing model and the choice of pricing model is dependent on the merchant account you choose.
The best credit card processors are the ones that offer the lowest overall markup over the components of base cost that you have no control over. This way you can choose a merchant services provider according to the requirements of your business and also get lower rates depending on the volume of your transactions.
Process Green™ has got the edge over other credit card processing companies of similar nature out there because it currently donates 10% of its revenue to nonprofit organizations. You don’t have to waste a lot of money simply in processing credit cards especially if your business is new. Moreover, the company provides lower rates than its competitors in business. Process Green™ has managed to expand its clientele in a short span of time because of the inimitable incentive it gives to its customers.