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Old 20th August 2012, 04:12 PM   #1

Join Date: Aug 2012
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Default Credit Card Processing Company

Hi business owner.

I used to use authorize to handle all my credit card processing, but the non-qualified card fee was adding over $500 on my credit card processing fee.
I looked into other company, and I found paypal. They don't charge those non-qualified card fee, but it still take 2.5% to 2.9% as service charge.

I wonder if any of you know any better/cheaper way of taking credit card?


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Old 21st August 2012, 10:55 AM   #2
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Location: Triangle area, NC, USA, North America, Earth (usually)
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Every card processing service I know of is going to charge a fee for processing those cards. The rates you get depend on
  • How much business you do (bigger companies sometimes have more clout for negotiating)
  • What sort of stuff you sell (i.e. is your business more or less prone to attract fraudulent purchases?)
  • What card(s) you want to offer (AmEx has different rates than Visa and MC, for instance)
  • How you sell ("card not present" transactions are more expensive than in-person transactions)

Without knowing more about your business, looks to me as though the rates you have now are not terribly out of line.


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Whether you think you can, or that you can't, you are usually right.
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Old 30th August 2012, 01:05 PM   #3
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Agree with Torka. Every company is going to charge you those fees. Depending on your volume and industry, you might be able to negotiate better rates.

Also, having your merchant account will lower some of the cost, instead of going through someone like paypal.

Without knowing more, I'd say shop around and compare!

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Old 2nd September 2012, 02:58 AM   #4

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Effective rate is the only true measurement of card acceptance cost. Divide total monthly fees by NET monthly volume and multiply by 100. Do not include Amex.

Finding total fees can be tricky. If you are on daily discount (most businesses are) you will need to add up a few numbers: small fees charged every settlement (usually can be found in the statement under total “discount paid”), one larger amount usually charged in the beginning of the next month (this charge applies to previous month processing and sometime listed as “amount deducted”), annual fee (if any) divided by 12, semi-annual fee divided by 6. Cross-reference with your bank statement, ask accountant for help if necessary.

Example: net volume $10,000 total fees $280. 280/10,000=0.028*100=2.8%

For more accurate results calculate an average effective rate of last 3-5 months.

If your average effective rate is around 2%, you are good. Nothing needs to be done. If not, depend on your situation there is might be a room for improvement.

I recommend calculating effective rate every month. It’s only takes minutes and will help monitoring this expense category. You can create simple Excel file to do calculations for you.

By the way, if you want total fees posted in the statement as one number, ask your processor to switch you to monthly discount. If you have been in business for a while and financially secure, it should be no problem.

Independent Merchant Account Consultant
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Old 4th September 2012, 03:57 AM   #5

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Location: California
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2.5% to 2.9% is okay rate . If any merchanct provider is charging less than that, then they would be definetly charging some other hidden fees. So in my opinion you must not go for cheap service provider.

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Old 10th September 2012, 12:01 AM   #6

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Picking a service provider which is charging the fees with no hidden charges would be a wise decision to make. Because on those hidden charges they pick take more than a worthy company which will not be charging any hidden fee.

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Old 19th September 2012, 08:21 AM   #7
Ayonna T

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Location: Cary, NC
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Hello winglau, I am actually a business owner that helps other businesses save money on their credit card processing. We offer the lowest rates in the industry and we even support causes at absolutely no cost to you!!! Cause marketing will bring more customers to your strore which increases profits for you and decreases costs. It is a win win for you. I do free analysis and will give you a complete breakdown of your charges and savings. We just saved a business over $400 for the year and $35 per month on her credit card processing bill. I would love to talk to you more about it you can email me at [email protected]

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Old 1st November 2013, 05:45 PM   #8

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Location: USA!
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Originally Posted by winglau View Post
Hi business owner.

I used to use authorize to handle all my credit card processing, but the non-qualified card fee was adding over $500 on my credit card processing fee.
I looked into other company, and I found paypal. They don't charge those non-qualified card fee, but it still take 2.5% to 2.9% as service charge.

I wonder if any of you know any better/cheaper way of taking credit card?

Hi Wing, just as a rule of thumb I avoid any processor that forces a percentage markup cost for each transaction. The base cost for most processors is 1% and pretty much unavoidable, but every markup beyond that can be negotiated down (and SHOULD be if you want to save your money). Check out the infographic at the bottom of this page for a better explanation that I can give: http://paymentdepot.com/compare/ but the gist of it is that most processing companies make their money through exorbitant markups, so choosing one with a flat subscription fee and no additional markup (or one of only a few cents per transaction, rathern than a %) is usually cheaper for the merchant. I have learned this lesson the hard way, so please do take it from me lol.

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Old 4th December 2013, 01:43 AM   #9
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I always suggest everyone to first check the credit card companies term & conditions and their customers reviews on any popular review websites where you can get most reliable and relevant information about the services of that credit card company.

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Old 9th January 2014, 03:28 AM   #10
Elmira Nancy

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Check out merchantmaverick.com

Akado Oy is the best SEO company you can hire for money.
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