How Are Fees Assessed on Merchant Accounts?
There are a few different fees associated with merchant services. The two most notable are monthly fees and transaction fees (credit card surcharges). The monthly fee is a subscription you pay to use the service. The transaction fee is an amount you pay each time you process a payment. In most cases, this is a base amount plus a percentage of the sale.
Some providers also charge setup, equipment and other fees. What you pay can vary significantly between merchant services companies.
How Can You Skip Transaction Fees?
You can avoid the credit card surcharge by encouraging customers to pay with cash. All providers charge transaction fees. However, some will help you set up a cash discount program to increase the likelihood that you will receive cash sales.
In this arrangement, you pass on to the customer some of the savings from not paying a transaction fee. For example, if the transaction fee would have been $2, you may reduce the sale price by $1.
Do All Merchant Services Providers Charge Monthly Fees?
No, some merchant services providers offer accounts with no monthly fee. They may charge slightly higher transaction fees. However, this is often more than made up for by saving the monthly fee. You will need to do the math for your sales volume to figure out which option is right for you.
Additionally, keep in mind that you have to pay the monthly fee no matter what. If you are unsure about your sales volume, consider opting for an account with no monthly fee.
Are Fees or Technology More Important?
This is a matter of preference. However, many businesses overlook technology in favor of fees. Having an optimized point of sale system can help you to save money through efficiency. For example, having a purpose-designed veterinary POS for your practice could save you a lot each month. The right solution leads to fewer mistakes, less training and happier customers.
Can You Add Merchant Services to Your Catalog?
Yes, many brands that offer business-to-business solutions consider adding point of sale solutions to their catalogs. If you become a POS reseller, you can begin offering merchant services to your customers without the investment necessary to develop your own solutions. It is a great way to offer more to your customers. Plus, you will become an expert on surcharges and other processing details.
Learn more about payment card processing to make the right decisions for your business’s needs. When you understand the fees and processes, you can make sure that you are maximizing your profits. Working with a great merchant services provider can help you to learn everything you need to know. Get started today and sign up for your merchant account.
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