Simpler Smarter Savings

Online credit card processing services allow any online business to handle orders in a professional, organized way. They’re a great way to expand a business and to immediately start handling new types of customers which is essential for long-term growth, as many customers prefer to use the Internet to purchase goods & services. Unfortunately, online credit card processing can also be expensive. Most services have several different types of fees, including per-transaction fees that can easily cut into the profits from each sale. Finding a merchant account with the lowest rates possible is an important part of taking payments online.

Most online credit card processing services have different per-transaction rates for different groups of merchants. Merchant rates are based on the number of transactions that they handle per month and the size of their average transaction. The lowest rates generally go to the businesses that are the most profitable to the credit card processing company. When looking for a processing service, businesses should try to accurately estimate how much business they’ll do in a month. Slightly inaccurate estimates aren’t a big problem, but grossly inaccurate estimates may lead to additional charges for the merchant. A realistic estimate can make it easy to compare different online credit card processing services in order to find the best possible rates. If it’s not possible or extremely difficult to estimate sales, merchants can ask processing companies about introductory programs. Online credit card transactions are less tricky from a technical standpoint than physical transactions, and while the credit card processing company needs to worry about things like encryption and bandwidth, they’re not taking on too many more costs by handling a few extra transactions per month, so many services have introductory programs or surveys which can be used to estimate potential sales. After a few weeks or months, a new merchant’s rate might be lowered if sales have increased.

There are other charges involved in credit card processing, such as gateway fees, which are typically charged on a monthly basis, and tech support fees. The best online credit card processing companies will list all of their rates upfront in order to make customers’ purchasing decisions easier.

Merchants should also remember that rates aren’t the only important factor in choosing an online credit card processing service. Ease-of-use and support are also extremely important, especially if an online store will be the main source of a company’s business. Nevertheless, rates are certainly an important consideration, and by looking at all of the fees associated with each processing service, a business can find an appropriate, cost-effective option that maximizes the profit from each sale.