![]() I f you need a POS system to process in-person transactions, make sure it offers everything you’re looking for. Not all payment processors accept all types of credit card, so that’s another thing to think about. Point-of-sale (POS) features aren’t necessarily that important for an ecommerce business, but for physical store locations with an online store, they are crucial to accept credit cards. Your business type may also influence your risk and credit card processing volume, limiting your choices. Some providers are meant for high-volume merchants, while others are efficient for ecommerce businesses that are just getting started. Your monthly credit card sales volume may heavily influence your pricing. Credit card processors charge a small markup to cover the interchange fees. The more premium the card is, the higher the interchange rate. The interchange fee is different from one card to the next. Interchange plus rates may fluctuate but offer balanced and fair pricing. Many companies offer reduced transaction fees once you reach a certain volume of online payments every month. You will pay a percentage of the transaction plus a small fee for each one that is processed. This fee is typically based on the transaction amount. Transaction FeesĮvery processor will charge a fee for each transaction you process. If you have a high monthly fee on top of your payment processing fees, these costs can add up quickly. ![]() Some companies will charge a flat monthly rate just to access their services. As you make a choice, consider: Monthly Fees No two companies are alike, and as your business evolves, you may need to switch providers. The most affordable option depends on your sales volume, industry, and the typical size of your transaction. The processor analyzes and transmits transaction data, then sends the relevant information to the issuing bank, and authorizes the transfer of funds between buyer and seller.Įach company will have its own pricing structure, so what may be the cheapest option for one business may be more expensive for another. You cannot accept credit card payments without one. You may also hear it referred to as a payment processor (not to be confused with a payment gateway). Flagship Merchant Services What are Credit Card Processors?Ĭredit card processors is a third party between your business and your customers’ credit card company.
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