Credit card processing companies and related FAQ
Credit card processing companies are hired by a business merchant for handling minute details related to the acceptance of credit card payments. It is a third party that can improve the reliability and speed of your transactions. Moreover, it can create an impact on your business’ rate structure.
Cost and fees charged by credit card processing companies
- Monthly statement fee: This is the fee that credit card is processing companies charge for sending you a statement every month.The monthly average charges are around 10 dollars.
- Setup and application fee: A credit card processing company charges a fee for setting up of the processor for accepting credit card payments. They can also charge a fee from you for applying. The fee amount can vary from company to company.
- Minimum monthly charges: This is the minimum amount that a credit card processing company accrues in a month. It is compulsory for every merchant to pay this minimum amount. For instance, minimum monthly charges charged by the company is equivalent to 25 dollars, and your monthly transaction fee is worth 20 dollars, then the company can charge you extra 5 dollars to cover the difference.
- A fee of gateway access: There is certain number of processors who charge an amount for giving a payment gateway that transfers the information about the transaction to the credit card processing company from merchant’s system. These monthly charges are somewhere between 10 dollars to 30 dollars.
- Interchange fees: This is the amount that is charged for every transaction processed by you. The fee so charged is equivalent to three percent of the transaction amount. Although the amount paid will vary depending upon the factors like kind of transaction, size of each transaction and the kind of credit card.
Frequently asked questions
- What are the various type of payments accepted by the credit card processing companies?
If you are a small business owner, then you would like to make sure that the credit card processor accepts every type of debit card as well as credit card, so that you don’t have to say no to your customers. Credit card processing companies receive gift cards, payments cards, and EBT. It accepts all types of payments depending on your business type.
- How can you find the companies that offer merchant services?
You can find such companies on the internet. You can also get to know about the customer complaints filed against such companies. There are some banks like Barclays, Citibank, US bank, and Bank of America that provide merchant services.
- How good is the customer support provided by the credit card processing companies?
There is a chance that you may face technical issues with your credit card terminal. You may also have questions related to processing fee to be paid in a month. Credit card processing companies offer 24×7 customer service. They provide direct assistance from the account representative who can solve your technical issues related to credit card processors. Therefore, it is going to be worth to pay credit card fees for avoiding confusing as well as unreliable service.
- Are there any companies that do not charge any credit card processing fee?
Swype Fast is one of the credit card processing companies that provides credit card processing services with zero fees. Through the use of Swype Fast, companies can serve their consumers who wish to make payment online by using their credit cards. These companies have reduced down their credit card processing fee to almost zero.
There are numerous automobile firms which do not accept credit card payments as it creates a negative impact on their profit. Now with Swype Fast, these companies can save a lot of money by accepting credit cards.
- Is there a requirement for a virtual terminal?
Virtual terminals help a business merchant in credit card processing transactions. They are cheap and cost-effective. Virtual terminals are available on the websites of the business merchant and provide an ease to the customers in making their payments. The credit card processing companies are responsible for setting up these virtual terminals. Virtual terminals are necessary for various individual merchants and online stores for the sale of electronic services provided by the bank.
- Can the acceptance of the credit card payments increase the sales of a business?
As per a survey conducted in 2014, around 80 percent of the Americans carry less than 50 bucks in their pockets. Every customer wants a flexible system for making payments. Therefore, if a merchant uses a credit card processor, then it will increase the sales volume of his business.
- Why is it necessary to carry a Smartphone for making payments through credit card?
Several merchant services provide easy to use applications, which are available in the app store. Moreover, you can purchase a device to swipe credit cards that get attached to the USB.
- What is a point of sales system?
POS system is a digital network connected to numerous checkout terminals. It records a transaction at the time it takes place to keep you updated with your inventory records.
- What benefits can a person get through the point of sales system?
A point of sales system of credit card processing companies enables a business merchant to keep a record of inventory and analyze the data of sales. Moreover, this system maintains the history of sales for a company. Plus, it adjusts re-order and purchasing levels.
- What is the impact of POS on the cash flow?
Some point of sales come along with the tools of integrated accounting like purchasing, accounts payable, inventory controls, and general ledger. The system of point of sales can help you in keeping a record of your small firm’s cash flow.
- How are details entered into a credit card processor?
A maximum number of systems will enable your inventory information to get entered through a barcode scanner. Every merchant should look for a point of sales system that enables them to enter the information manually.
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