Simpler Smarter Savings

Many entrepreneurs understand quickly that credit card acceptance fees are not cheap. In fact, over time, many come to hate this charge as they realize it is hard to make a profit. However, there are a few reasons why it is not free or cheap to accept credit cards. With that in mind, here are three reasons why credit card fees are so high.


Unfortunately, a lot of people commit fraud and use other people’s credit cards. Sadly, most people get away with it, and credit card processing companies must pass on the cost. Remember, since most people have merchant accounts, they will pay for fraud with increased fees and costs. Luckily, most companies try to minimize this, and it helps keep the costs down for the average consumer. Of course, as companies get smarter, so do the criminals. This game is likely to continue for the foreseeable future and consumers will lose out since merchant providers will, inevitably, pass this cost on to their customers.


When working with a credit card processing firm, a customer will understand immediately that he or she has plenty of people to work with. This is advantageous as a client can get his or her questions answered with ease. However, this comes at a cost as merchant accounts providers have to pass on the expense to customers who demand a lot of services. Without a doubt, credit card processing companies have large staffs that can help clients run their companies and make sure that no serious errors occur in the process.


Most people, when they whip out a credit card, do not take notice at much going on with the transaction. However, if a consumer did, he or she would realize that it takes a lot of equipment and software to run the card. In fact, some companies provide a POS system and other expensive and up-to-date equipment. Without a doubt, this can easily cost hundreds of dollars a month, and a small business owner often gets a break from the merchant account provider. However, in the end, a business will pay this expense in higher monthly or transaction fees.

There are multiple reasons why it is not cheap to accept credit cards. When understanding this, a company owner will not have a problem justifying this cost. In the end, it is worth it as it is nearly impossible to succeed without accepting plastic.