InterDyn CFO Consulting

Credit Card Processing Fees Add Up Fast: Know your Options and Limit this Expense

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If your customers pay with credit cards, the benefits are twofold: you get paid faster and the process is usually easy for your customers. Although these benefits are nice, a percentage of what you charge through credit cards goes to credit card processing companies.

Credit card processing fees can easily add up, so it’s important to know your options in order to limit this extra expense. Let’s take a look at the potential fees and whether or not it’s a true value:

  • Startup Fee: Some companies require help in setting up a credit card processing account. Paying for this service can pay off if the account is optimized and will fully meet your business needs. If you or a co-worker is well versed in setting up an account, this may be a waste of your money.
  • Transaction Fee: This is the primary fee charged by credit card processing companies for every transaction made. This should be around 1-2% of each transaction. Shop around and find the best percentage option for you.
  • Monthly Minimum: If your company doesn’t charge anything, then the processing company doesn’t get paid, which is why some of them have a minimum requirement of monthly transactions. If you don’t meet this minimum, than you are subject to a small fee. If you know your company will process well above that minimum, there is no need to worry. But if you are struggling to meet this, you may want to look into companies that do not apply this type of fee.
  • Charge Back Fee: Managing refunds can be a taxing process, but it is inevitable for most of us. Most processing companies will have a certain number of charge backs allowed each month. So make sure to streamline your charging processes to avoid these fees.

Each type of credit card charges different fees, so pay attention to the fine print and make sure the regulations work for your business needs. InterDyn – CFO Consulting provides Microsoft Dynamics® accounting solutions to help simplify your business processes. Contact us for more information on how Microsoft Dynamics GP or Microsoft Dynamics NAV could help you.

By InterDyn – CFO Consulting, Florida Microsoft Dynamics Partner

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