In this article, we are going to be discussing the different kinds of fees taken in credit card processing. Also, we will discuss the best way to accept any credit card transaction in your business.
What are the different fees in credit card processing?
The most common question that is asked by the people is where to take card payments and different fees. Fees is the most common question that is received by all the processing companies and the bank. This is because the merchant wants to select the best payment service with less chargeable fees.
They do this important research to save some money in the whole transaction process. Also, the fees are taken by the processor depending upon the card and the company which they are using. Below mentioned are some of the fees that are taken by the processor from the merchants.
- Transactional fees
This is a fee that is taken with every transaction processed and can be broken down into percentages. These are mandatory charges which the merchant has to pay for the ability to accept these kinds of payment. This means that you are paying the credit card company for giving you these cards.
- Recurring fees
This is like daily transaction fees that are taken by some of the processors. This fee is like an extra profit that they make from the people that transact their business daily. You can see these kinds of fees are taken at the month-end statement, which is given by the bank.
- One-off fees
More fees can be triggered by an action of the customer. There can be terminal, early terminal, setup, processing, reprogramming, PCI, and chargeback. These are the fees. Due to the new rules, these processors are allowed to take only the necessary fees from the merchant.
What is the best way to accept credit card payments?
There are many different kinds of payment processors out there in the market. Some of the processors will eventually give you a card reader that you can attach to your mobile phone. Then you will have to simply just swipe the card in the given direction in the manual.
Then it will read the black-coloured magnetic reading of the card and start the process of taking the money. This is possible only after the customer enters his or her pin correctly into the application after swiping.
There is also an EMV chip reader that is given by these processors due to a new card coming out. EMV is a chip that is present inside the new design of the cards for easy processing. These chips have their unique code and design, which makes it easy for banks to see their account.
The card reader and swiping machine are very cheap to buy from these processor companies. Some companies charge you for these kinds of the product while some give you first product only for free. The card swipe is used so that they can verify that the card is not faulty or has been forged by someone.