A Complete Guide to credit card processing fees!

Processing fees are an unavoidable part of running a business, but not all credit card processors charge the same amount. Knowing what goes into the cost of processing your customers’ payments will help you pick the right payment processor for your business. Let’s take a look at the different types of processing fees and how to identify which one makes the most sense for you.
 
First, there’s the interchange fee. This is the rate set by credit card companies like Visa and MasterCard each time a customer pays with their credit card. It’s based on factors like whether or not the transaction is done in person or online and whether it’s a consumer or business card. It’s important to note that you cannot negotiate the interchange fee–it is set in stone by the card companies.
 
Next, there are markup fees. These are added on top of the interchange fee and vary from processor to processor. Depending on your volume of transactions, some processors may charge a flat rate per transaction, while other processors may charge a percentage of each transaction as a markup fee.
 
Finally, there are monthly fees and onboarding fees. These usually include setup costs for setting up the payment processing system and may also include ongoing monthly maintenance costs. Some processors even offer discounts for signing up for a long-term agreement or higher volume of transactions.
 
By understanding how credit card processing fees work, you can make sure that you get the best deal for your business. When looking for a processor, consider all of these factors to ensure you are getting the most value for your money. With this knowledge, you’ll be able to make an informed decision about which processor is right for your business.