The Basics Of Credit Card Processing Rates

Credit card processing system may not be a topic that a lot of people especially

merchants like you might not be totally excited about, but its an important topic nonetheless; in order to better understand the financial and payment-processing industries (as well as to be more aware of such details, so you arent scammed or ripped off), its vital that you understand the basics of credit card processing rates, and in this article, thats what well be discussing today.

While there are different types of credit card processing rates, variations on these credit card processing system is integrated with the rates and fees, and changes in policy depending on the merchant account service provider you happen to partner with, there are some basic credit card processing rates that typically remain similar across the spectrum of merchant account and payment-processing providers.

Authorization: The authorization fee is charged whenever a transaction is authorized, regardless of approval or decline. Such processing is separate from transaction fees and per-item fees.

Batch: Each day, when a merchant transmits the transactions of the day to their acquiring bank, a batch fee sometimes called a batch header fee may be issued. Some service providers initiate this fee deduction by default, while others require manual facilitation.

Chargeback: One of the most common and most damaging credit card processing rates to business owners is called a chargeback fee. Investigate this one on its own and thoroughly, too, because they can add up.

Early Termination: This is definitely one fee to look out for, and this happens when you are charged for ending your contract before the set terms within the contract expire. Some contracts can be from one to three years and all the way up to five and these early termination charges can include monthly minimums and statement fees that would have occurred, should the merchant have remained.

Interchange: An interchange fee is a fee for accepting credit card transactions. Typically, the interchange fee is one that your bank pays your patrons bank. This is easily the largest of the credit card processing rates to look out for.

Monthly Minimum: This is a method for the merchant account provider to ensure that merchants pay a certain amount of fees monthly for account maintenance.

Nuisance: Such credit card processing system is charged when a card is declined and then swiped again, resulting in a nuisance charge for each extra swipe.

Any questions on credit card processing rates, fees, or other related topics? Give Vision Payment Solutions a call today at the number above, and our representatives can discuss our own credit card processing rates with you. Dont hesitate to leave your provider if theyre issuing too many fees or too high of credit card processing rates. Choose VPS!

by: George Williams

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