Typical rates for credit card processing range from 2% to 2.5% for retailers that spend the majority of their credit cards, up to 2.25% to 3.50% or more for Business. commerce and mail.
There are some variables that can dramatically affect the average cost of processing a business, so this whole amount should be taken with a grain of salt. If you are interested in calculating a more accurate average cost for your business, consider the following variables in your calculations.
How are the cards processed?
Businesses generally process credit cards like card-stream or card-not-now. As the name implies, the card now refers to the act of passing a customer's credit card electronically through an electronic reader, and a letter does not now refer to a card processing action when it is not physically present.
Business cards are now considered less risky, so they pay lower Visa and MasterCard exchange rates. They also have lower equipment costs because no software or third-party gateways are required to route through the Internet.
As you can see in the previous linked trading hours, the average cost of the current business card principal is 1.60% to 1.90% depending on the mix of debit cards versus standard credit cards and credit cards. versus gift cards
Non-attendant business cards have a higher cost because card processing methods carry higher risk. As such, they pay a higher exchange rate and also have additional costs associated with third-party software and gateway providers.
Typical exchange rates and gateway fees range from 2.25% to 3.00% for non-card companies.
How big is your business process?
Corporate credit and debit card sales have a direct impact on average processing costs. The monthly and annual rates have a huge effect on the average cost when the monthly processing volume is low.
For example, the average monthly cost is only $ 10 for gross sales of 1% for companies that process $ 1,000 per month. When processing rates and other processing rates are added, the total percentage may be 4% to 5%.
Similarly, companies with the same average monthly fee of $ 10 that processes $ 10,000 per month spend only 0.10% of sales to pay a fee.
What is the average sale of your business?
Their average business sales have a big impact on credit card processing fees. The reason, the smaller average sales size results in more transaction costs. On the contrary, higher average sales result in much lower transaction costs.
In the case of a non-attendance card business that pays transaction fees through exchange, processing and gateway providers, the cost impact is significant.
The small average ticket for the business card will now not have an impact, but still quite a medium cost factor.
Typical transaction costs are $ 0.20- $ 0.30 for business without cards now, and about $ 0.15- $ 0.20 for business cards now.
Multiply the average monthly transaction of your business with the previous transaction costs to determine the overall impact of the cost.
How many processors will you get?
Credit card processors use two types of common pricing schemes called packages and exchanges. The last of the two, the exchange through, is generally considered cheaper and more transparent than the package price.
If you currently use or start using processors that use tiered pricing, you will usually pay a higher profit margin and therefore have a higher credit card processing fee.
Fortunately, it is easy to distinguish between price and lot rate. The package price plan will have qualification, average rating and quality levels along with flat transaction costs. Changes through the pricing scheme will have a single and low interest rate of 0.30%, along with flat transaction costs.
Choosing an exchange through the pricing model will help reduce your company's credit card processing costs dramatically.
Find the best credit card processing services by getting offers from multiple credit card processors at CardFellow.com. Our software calculates the average cost of processing credit cards for you.
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