As a business owner, have you ever taken a deep look at your credit card billing statements to determine if you’re overpaying on fees? Or, have you ever encountered a domineering salesperson making promises to save you loads of bucks in case you are overpaying?
Credit card processing rates are complicated and hard to comprehend. They can be an overwhelming, confusing, and frustrating part of business. That said, accepting credit cards and understanding processing rates are essential to keep your business operating efficiently and profitably.
Therefore, it’s more than worth the effort to go through your billing statements to understand the process. That way, you’ll always know what you are paying and can get a better understanding of your true overhead. Here are a few quick ways to find out if you’re paying too much in credit card processing fees.
Using Square or PayPal?
Are your transaction fees just as much as your average monthly transaction? This is a sign you are probably paying too much. In order to avoid hidden charges and make your credit card processing easier, avoid processors like these who tend to keep the true picture of wholesale costs hidden while charging additional markups. Instead, consider the many other payment acceptance options available to you.
Compare credit card processing rates.
Whether you’re just starting out or you’ve been accepting payments for years, you should always be aware of overpaying. Choosing your payments partner is critically important. You’ll want to compare rates and run a professional cost-analysis comparing several processors on their credit card processing rates. It is advisable to make meaningful cost comparisons between these processors. Using a cost analysis workbook, you can always stay abreast of the market offering to make sure you never overpay on rates.
Beware of “Top Ten Processors” or “Best Processors” lists.
Before you choose your processor, make sure to gather as much information as you can about the available processors that offer affordable rates within the market. Reviewing these sites will offer insights about the “best processors for credit card processing rates.” Don’t be fooled by sites claiming to be doing any favors for you. Many are just doing their job by recommending processors that give a kick back for your click.
Processors can have differing rates and terms based on specific situations that “top ten processors” and “best processors” almost never fully delve into. While doing your research, keep this in mind so you can make a wise decision. Calculate an effective rate of credit card processing by dividing the total processing fees with the total sales volume. Thoroughly check the rates of every processor so you don’t end up paying too much.
Take the reviews lightly and make sure you follow exactly what the websites say. Many processors offer credit card benefits too, which is a cherry on the top. You can always count them as the “best processors” because they offer something more than the rest in the market.
At NAB, we help 100,000s of merchants process more than $45 billion transactions.
To find out more about the services we offer, visit our FAQ page on our website or ring us at 866-485-8999, available at your service 24/7.