The ability to accept credit card payments has become an integral part of online businesses. Most people rely on credit cards to do commerce online because other options are either available to a limited number of customers or they also require credit card information to verify the identity of the user. If you have a business online, you should find a way to integrate credit card processing for long-term success of your business. But before you do it, there are a few things you need to learn regarding online credit card processing rates and the factors that determine these costs.
A number of entities are involved in a single credit card transaction and each one of these gets a share of the total cost. Credit card processors charge a fee, which the merchant has to pay. This fee is determined by a number of factors. Size of business, type of industry, type of credit card, credit score, and the extent to which the business is conducted online are some of these factors. You should consider these carefully before you choose a credit card processor for your business. Some companies do not have any setup fees, whereas others may charge a huge amount as part of application approval.
There is also a monthly fee involved, which is either fixed or depends on the volume of monthly transactions that your business carries out. Whenever a transaction is carried out, the processor gets a share usually around 2% of the total cost. If the processor implements some security procedures, there is extra fee charged. There is another important term “discount rate” that you need to be aware of. Swiped transactions are charged a lower rate than keyed transactions. This is mainly because a swiped transaction is usually settled within 24 hours. In a keyed transaction, the card is not available physically and a billing address has to be given for verification.
Process Green™ is a reliable merchant services provider that puts the interests of its customers before its own. The company offers lowers rates and provides a way for merchants to retain their customers and expand their businesses. By using this service, you as a business owner get a chance to donate a share of each credit card transaction to a nonprofit organization of your choice. This way you can be sure that your hard-earned money is going into safe hands and that you are contributing to make this world a better place to live in.
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