“Credit Card Processing” Posts

How to Calculate Your Credit Card Processing Effective Rate

How to Calculate Your Credit Card Processing Effective Rate

When a business is considering taking credit card payments, there are several questions that should be answered before they select a partner, including the following: “What are the terms of the contract?” “What equipment am I receiving?” “What level of support will I get?” “What are the risks involved?” However, there’s another question that most businesses tend to fixate on: “What is the cost?” The answer to this particular question can get quite convoluted. When you say “cost,” are you referring to the cost on your current Interchange-plus pricing plan of a downgraded over-the-phone transaction on an American Express…

What Is EMV Credit Card Processing?

What Is EMV Credit Card Processing?

EMV credit card processing entails a series of steps to authenticate a payment by ‘dipping’ or ‘inserting’ an EMV-chip card. To correctly process an EMV credit card, a level-3 EMV certified card reader is required. To achieve proper EMV credit card processing, you must take a number of pre-transaction steps. Depending on your role in the payment process, these steps may be extensive or non-existent. EMV Credit Card Processing Preparation Merchant Service Providers A Merchant Service Provider is an organization that issues individual merchant accounts to businesses processing credit cards. Typically, a provider will also offer the equipment needed to…

How to Read a Credit Card Processing Statement

How to Read a Credit Card Processing Statement

When seeking an answer to this question, it’s vital to know that no two credit card processing statements are exactly the same. Statements vary among providers in regard to how sections are labeled, the order they appear in, the names — and shorthand — of different fees, etc. For this reason, we’ll provide a general overview of how to read a credit card processing statement so that you know how things are typically displayed. If you’ve yet to sign up with a Merchant Service Provider or are considering a switch, we recommend asking to see a sample billing statement…

How to Set Up Credit Card Processing for Small Business

How to Set Up Credit Card Processing for Small Business

You run a small business and are ready to take the next step: accepting credit cards. Congratulations! Whether this is your first business or a new venture you’re investing in, you might not be too familiar with credit card processing. Outlined below are four steps to set up credit card processing for a small business. We threw in our industry expertise for each action item. Step 1: Choose your preferred pricing plan Small businesses tend to have simple business models and low processing volume, so an uncomplicated pricing plan is best. Our recommendation is either Flat or Interchange-plus pricing…

What Does Credit Card Processing Cost?

What Does Credit Card Processing Cost?

There are a number of payment providers that enable you to accept credit cards. Whether you interact with them directly or not, there are a handful of fees you have to pay for the privilege of accepting plastic. Some fees, like Interchange, cover the wholesale cost of accepting a given transaction. Others are charged monthly, quarterly or annually. We’ll detail how Interchange works and various fees that can factor into your credit card processing costs. There is no right answer here, so it’s best to understand which fees come directly from the card brands versus which are dictated…