The Most Affordable Methods for Accepting Credit Card Payments
If your online business accepts credit card payments, you likely understand that there are an incredible number of fees involved in doing so. You will be charged transaction fees, interchange fees and authorization fees, among others. Accepting a credit card payment for a $100 invoice can easily cost you between $2.00 and $5.00, depending on the third-party processor you choose to use. If you are fed up with the fees associated with the acceptance of credit cards, you have options. Here are five online alternatives to traditional merchant accounts:
What to Know About Credit Card Processing: 5 Tips for Getting the Lowest Pricing
Editor’s note: This is a guest post provided by Ben Dwyer founder and CEO of CardFellow.com, a service that allows small business owners to compare credit card processors for free and save 40% on average from credit card processing fees. Ben has written several articles on credit card processing including Credit Card Processing Exposed, that are essential for every small business owners merchant account tool kit. Ben has the ability to make a seemingly complicated process very easy to and understand. Visit his blog for more informative articles.
Credit card processors are quick to promise savings, but few actually explain how costs will be reduced, or by how much. If you know you’re overpaying for credit card processing, but can’t get a straight answer to determine why, this article is for you. The following five tips will show you how to cut through the smoke and mirrors to lower your business’s credit card processing costs.
Square Offers Flat Fee Per Month, All Swipes Included Option
Square, the mobile credit card payments startup, is cutting small-business owners a break, offering a flat fee per month with an all swipes included option.
According to a blog post, you can pay $275 a month, up to $250,000 a year in revenue. Above that rate, it’s a flat rate of $1 per transaction, plus the old 2.75 percent fee. You’ll also pay the 2.75 percent on any purchase above $400.
Crunching the Numbers
How good of a deal is it? The math suggests if you’re pulling over $10,000 per month in swipes, you should go for the flat rate. Although if you expect to get above $250,000, you may want to reconsider…