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Talk the talk and walk the walk.

How Credit Card Processing Works

It is not necessary to have intimate knowledge of the inner-workings of the bankcard system in order to get the lowest merchant account fees. It is a good idea however, to have a general understanding of how things work because fees are incurred at various stages of the system. Knowing the lay of the land will help you to isolate areas of possible savings.


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Merchant account fees

Rest assured that merchant account fees are not as confusing as you might think. In fact, fees are pretty straightforward once the components are examined individually.

In this article we will explain the different aspects that contribute to credit card processing costs to give you a solid understanding of who’s charging what, and which areas of cost you can control.


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Interchange fees

Interchange fees account for the majority of credit card processing expense. A familiarity with interchange is vital knowledge for any business owner or manager.

You’ll find a link to the current interchange fees in each merchant account quote that you receive here at PaidSuite, and also in the text below.


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Merchant account consultant

A logical step toward lowering credit card processing expense is to seek assistance from a merchant account consultant; but many business people do not realize that they already have a consultant at their disposal free of charge.


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Effective Rate

The effective rate is the most accurate singular measure of the cost-effectiveness of a merchant account.

The effective rate is expressed as a percentage and is calculated by dividing processing fees by sales volume. The credit card processing cost calculator here at PaidSuite will automatically calculate the effective rate of each quote that you receive to help you choose the best solution.


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