For a small business, choosing a credit card processing company is similar to an individual choosing what credit card to apply for. There is a good amount of research involved in order to feel confident about your decision, particularly regarding the fine print. We wanted to explain the fees associated with credit card processing so that you have the information you need to make a decision that is best for your small business.
When selecting a merchant provider, it’s important that the solution offered allows your business to accept all types of credit cards that your customers may be using. You also need quick access to your funds in order to operate your business like buy inventory and pay employees. The credit card processing company you select should not require you to change bank accounts, sign a contract, or pay for equipment.
As for the fees associated with credit card processing, Cardfellow finds that “the average credit card processing cost for a retail business where cards are swiped is roughly 1.95% – 2%. The average cost for card-not-present businesses, such as online shops, is roughly 2.30% – 2.50%.” However, we suggest that you don’t settle for average – because there are a number of variables to take into account. What is important is that you receive an exact breakdown of the credit card processing fees for your business.
Keep in mind that retail businesses that physically swipe cards typically have lower interchange fees than e-commerce based businesses. To determine whether the breakdown of fees is fair, you’ll need to know the average monthly processing volume of your company as well as the average amount of an individual debit or credit card sale. Cardfellow provides an example that will help you calculate the average cost of credit card processing fees for your business. Of course, we will perform this calculation for you if you are interested in working with us.
Something to be wary of when selecting a processor is their markup. Cardfellow offers an in-depth explanation of this by describing the difference between pass through and tiered pricing. The bottom line is that hidden fees are not your friend and Cynergy Data Texas does not use this practice. We link you directly with the Visa/Mastercard Interchange rates and guarantee that you receive the best interchange rate possible.
Beyond that, we offer POS systems like the Clover Station that is intuitive to use and will simplify your day to day business operations. Excellent customer service is our priority and our clients never have to sit through a phone tree to receive an answer. We value our clients and exist to help them succeed financially. Contact us if you would like CynergyData to be your last credit card processor.