card processing

Never choose a card processing charge on a personal end!

There has been a lot of information recently generated on the Cash Discount Programs and merchant credit card processing charges entailing the same. Many people are wondering if they can self-fulfill the requirements of the cash discount program and control the card processing deduction system. But the answer is a big NO! Let’s read why!

Doing it on a personal end? Bad Idea!

If you’re trying to even think of applying for cash discount program on personal end, then you will have to reconsider the thought! Cash discount program including card processing fee may be easy to understand, but it is not as simple in its operations. It is a very complicated, process and one might get into a lot of proprietary and calculation troubles handling it alone.  

Under the cash discount program, many changes in the policies and rules relating to surcharging are necessary. It will need an alteration to sales terminal applications as well as the card processing platforms. Changes in the same will further enable the merchants to run a card processing transactions. Some of the changes are listed below.


  •    There are various rules and tax inhibitions that are necessary for implementing an added amount of the transactions.  Thus, the sale receipt has to display the additive amount with a unique, detailed description in a separate order.
  •    If you’re performing this in a wrong manner, the card processing charge will eventually become taxable revenue. It saves you more, but this functionality is not offered by most of the card processor sale terminal applications.
  •    One may undergo a handwritten process, in surcharge stream and use receipts, but that will ultimately become an inefficient way of working.

Card processing array

  •    Being a technical pointer to consider, MasterCard and Visa rules, in particular, requires the surcharged processing transactions. After that, the amount of processing has to be transferred to distinctive authorities, and clearance process fields. Thus, this has to be handled by the merchant card processing unit and becomes difficult to be settled by self.

So, it may look a bit tempting to handle this process on self-basis and personalized approach, but it is advised to look out for a sophisticated merchant card processing help with a certified terminal application system.

Relying entirely on the manual process will lead a person nowhere out of chaos. The list of errors builds up a lot of risk for a firm and its operations. The need to apply a perfect terminal application as a complete solution to automatically formulate the card processing charges is a must.

Swype Fast is one such firm, providing cash discount programs efficiently and in a very sophisticated manner. They are determined to serve the quality and apply the appropriate charges at the right time always. Swype Fast is very vigilant about the card processing charge as by the norms.

Frequently Asked Questions entailing the card processing charge and cash discount – From customers point of view

Let us read some of the frequently asked questions from customers point to view to gain a deeper understanding of the topic.

1.Why is it necessary to impose a merchant credit card processing fee on all the commodities and services?

Credit card organizations are charging a particular rate of 5% on every transaction (both debit and credit). This effective percentage includes all the gateway fees, taxes, statement fees, authorization fees, batch fees, interchange fees, assessments, regulatory fees as well as the extra miscellaneous fees.

All the fees collected help the merchant to run the entity profitably. Thus, this high-end cost entailing the acceptance of credit card for the transactions has to be recovered by charging the merchant credit card processing fee on every product purchased via credit card.

This is done to offset merchant fees and run the business as a profitable entity. Also, under cash discount program, a discount of additional customer service charge is offered to people transacting via cash for every commodity and service availed.  

2. Is deducting customer service charge on each product or service offered, and giving an equivalent cash discount to the entire set of customers paying via cash, legal as a policy?

Yes, this policy is legal in every sense of its existence. Merchant credit card processing fee charged is legal for most of the business type, except for few. Specific industries need majority votes or legislative appeal.

Thus, they are not supposed to charge the card processing fee and undergo the cash discount programs. But other can freely access this program without any worries. Also, along with its legal terms, a business has an open choice to adopt the cash discount program and charging card processing fee on their products and services.

Usually, this deduction is equal or near to the card processing fee paid by the merchants. In one or the other way, this deduction covers the cost of card processing, thus making it easy for merchants. Also, being a deduction from the pockets of a customer, a business adopting cash discount program has to put up signage alerting customers about the charge of card processing fee as a customer service charge and entailing cash discount.

3.Earlier the transactions were free of this charge for all the services and products. The card processing fee as a customer service charge is prevailing now. Why is this processing fee charged in the present situation and was not prevalent before?

The charge paid by a merchant keeps on fluctuating, mainly increasing due to an increment in the usage of credit and debit cards by the customers. This increases the expenses of card processing for the business makers on all the products and services offered.

This condition also hampers the customer service providing abilities due to more expenses and fewer profits, leading to financial distress in the firm.  The cycle goes on and affects the quality levels of the products and services offered by the merchants, gradually declining the satisfactory levels too.

The overall suffering loses the customers and goodwill of a business maker. Thus, it becomes essential to keep a balance between the increasing expenses along with generating revenues and profits. So, to overcome the growing cost of card processing, the customer service charge is levied on the buyers.

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