Updated: Apr 21
Credit card processing companies can be a helpful tool for businesses and entrepreneurs of all sizes. After all, they offer an easy and convenient way to accept payments from customers who prefer to use credit cards.
But there’s more to this service than meets the eye – let’s take a closer look at the ugly truth about credit card processing.
The Ugly Side of Credit Card Processing Fees
One of the biggest drawbacks associated with credit card processing is that it isn’t free. Every time you process a payment, you are charged a fee by the processor. This fee is usually a percentage of the total purchase price, plus an additional flat fee for each transaction. These fees can vary greatly depending on the processor, so it’s important to shop around and find one that offers competitive rates.
Understanding the type of fee structure is essential in ensuring the best rates as well. Try to avoid fee structures that are fixed or a flat rate - especially if you are a business that primarily deals with B2B transactions. By getting pushed into a flat or fixed rate, it may seem simple on the surface, but you are missing out on much lower interchange rates and discounts. Interchange Plus pricing may look a lot more complex, but it is the most transparent type of pricing with a lower cost.
In addition to these fees, most processors also charge additional fees for things like setting up your account and other services. And if you want access to features such as recurring billing or invoicing, you may have to pay extra for those as well. So make sure you read through all of the fine print before signing up for any type of credit card processing service.
Potential Dangers Lurking Below The Surface
Another potential danger associated with credit card processing is security risks. Unfortunately, no system is 100% secure – especially when it comes to digital transactions like credit cards – so it’s important to be aware of what could happen if your customers’ data were ever compromised. It’s wise to research companies carefully and make sure they have robust security protocols in place before signing up for their services.
Credit card processing companies can be incredibly helpful tools for businesses – but they come with some hidden costs and potential dangers as well. With this in mind, it pays (literally!) to research companies thoroughly before signing up for their services, so that you fully understand what you are getting into and can make an informed decision about which processor best meets your needs and budget requirements. By being aware of both the good and bad aspects of these services, business owners will be better equipped to make an educated decision when choosing a provider that works best for them.