--- title: Minimize Credit Card Processing Fees With These 3 Tips description: Understanding credit card processing fees will help you get the best rates. Learn what you can control and start saving. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-fees.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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It's no wonder there’s more to your credit card processing fees than meets the eye. To get the best rates, you must first understand what exactly determines a credit card processing fee. Though some factors are simply out of your hands, if you implement best practices with what you can control, you’ll get the lowest rate possible. ## How Credit Card Processing Fees Are Determined Your rate depends on a combination of factors that include: - **Interchange (IC)** - The wholesale cost to run a transaction. IC is determined by card brands (Visa, MasterCard, Discover, Amex), and paid by Merchant Account Providers, but passed onto their customers. - **[Rate Plan](https://blog.payjunction.com/best-credit-card-processing-plan/)** - There are three typical rate plans that providers offer: Tiered, Flat or Interchange-Plus pricing. Interchange-Plus is typically the most cost-effective, while Tiered and Flat tend to be more expensive. - **Provider Markup** - The cost for providing the support, product and service to accept payments. The markup is added to each transaction. - **Method of Transaction** - How you run a transaction affects the cost. Swiping magnetic stripe cards and inserting chip cards are the cheapest methods. Keying in cards results in a higher transactional cost. As risk goes up, so does the cost. Keying-in cards is the most risky method of transaction. - **Card Type** - There are many different types of cards on the market. Debit cards tend to be the cheapest since funds are transferred immediately. Business and rewards cards are the most expensive, while credit cards are average. The basic rule of thumb here is as rewards go up, so do costs. - **Fraud Exposure** - If you lack certain security precautions for taking payments, you can subject yourself to downgrades, which means more expensive transactional costs. Even though there are factors you can’t control, like card type and Interchange, there are components to your credit card processing fees you can influence. You just need the right knowledge to apply best payment practices. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## How to Get the Best Rates 1. **Know Your Provider’s Markup** - Take the time to understand the markup your provider is charging on top of Interchange. This is the fee you can negotiate, so there’s a competitive advantage in it for all providers. Be sure to weed out any [unethical billing](https://blog.payjunction.com/tag/unethical-billing/) practices, as some providers will take advantage of their customers by hiding fees in the complexity of merchant statements. 2. **Understand Your Rate Plan** - If you’re on a Flat or Tiered rate plan, there’s probably room for savings. Understand [how your current plan breaks down](https://blog.payjunction.com/best-credit-card-processing-plan/) and re-evaluate if it’s the best fit for your business. Depending on your business size and processing volume, you may want to consider changing your rate plan. 3. **Take Every Security Precaution** - Use the highest security measures to minimize fraud exposure. Take the necessary steps to protect your business from downgrades and always run card types correctly to ensure the lowest processing rate. Thinking you might need to re-evaluate your current payment practices? It’s not too late! Take the time to sit down and see where you can improve your average credit card processing fees. If you’re unsure, get a professional analysis of your statements to see where there’s room for savings. ## Identify unethical fees in your merchant statements with our free checklist! Surprised by what determines your credit card processing fees? Do you see room for improvement in your payment practices? Share your thoughts below, we’d love to hear from you. [Security](https://blog.payjunction.com/topic/security) [Rates](https://blog.payjunction.com/topic/rates) --- ##### [![A Guide to Payment Processors](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-middlemen.svg) A Guide to Payment Processors](https://blog.payjunction.com/credit-card-processing-middlemen) ###### About Author ![Picture of Ursula Librizzi](https://blog.payjunction.com/hs-fs/hubfs/Ursula_Librizzi.jpg?width=200&height=200&name=Ursula_Librizzi.jpg) ### Ursula Librizzi Ursula is the sales and marketing operations manager for PayJunction. She oversees daily marketing tasks and liaises between the sales and marketing departments. ###### Related Posts ## [![Detecting Padded Dues and Credit Card Assessment Fees](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-assessment-fees-unethical-billing.svg) Detecting Padded Dues and Credit Card Assessment Fees Due to the complexity of billing statements, many Merchant Account Providers practice unethical billing. In part four of this series, we will reveal padded dues and credit card assessment fees: another way providers make money by hiding fees from their customers.](https://blog.payjunction.com/credit-card-assessment-fees-unethical-billing) ## [![Understanding Credit Card Authorization vs. Credit Card Pre-Authorization](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-authorization.svg) Understanding Credit Card Authorization vs. Credit Card Pre-Authorization In the payment processing industry there is a lot of payment jargon used interchangeably, and sometimes done so incorrectly. As a business owner processing credit cards, it is important you know what these terms mean so you use them correctly if a customer asks.](https://blog.payjunction.com/credit-card-authorization) ## [![Credit Card Processing Agreement Form: 3 Tips to Know](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-agreement-form.svg) Credit Card Processing Agreement Form: 3 Tips to Know A credit card processing agreement form can hide terms and omit specific rates that could do significant financial harm to your business if unaddressed.](https://blog.payjunction.com/credit-card-processing-agreement-form) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. 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