Do You Know What Credit Card Fees You Pay?
June 19, 2018 by OSYB Staff
Payments made by credit cards incur fees for business owners but it’s a smart business option to accept this form of payment. Intuit QuickBooks shares the credit card fees that you will face:
- Interchange fee is the fee that banks charge for performing the transaction and they are the largest of all the fees.
- Assessment fee is the fee that the credit card companies charge so that your customers can opt to pay by credit card. Businesses get paid immediately when a customer pays by credit card and the credit card company has to wait for the customers’ payments, so that transaction doesn’t come for free.
- Merchant service provider (MSP) markup fees are the fees collected by the companies that process your credit card fee.
- PCI compliance is another MSP markup but important to understand because it means you are complying with Payment Card Industry Data Security Standards (PCI DSS), which are in place to keep credit card data secure to help minimize the risk of fraud or a data breach.
- Credit card readers fees. There are several types of card readers and each of them comes with its own set of fees. Shop around and find which one works best for your customer check out process.
So knowing about all these fees, you may think it best to bypass credit cards and just go with cash or check. That may not be a good choice, “considering that half of all Americans say they carry cash less than half the time and of those, more than three-quarters have less than $50. In another survey, only 11 percent said they preferred using cash, compared to credit or debit cards.”
For detailed information: Everything You Ever Wanted to Know About Credit Card Fees
Image Credit: Deposit Photo
Category: Small Business
