Accepting credit cards for payment in your retail business makes the shopping experience much more convenient for your customers. However, many business owners may be wary about accepting credit cards due to the initial setup costs and ongoing credit card fees. It is important to understand the financial investment you are making and the return you can see by making it easier for customers to pay for your products.

Additionally, working with a company that specializes in credit card merchant processing allows you to get expert assistance with your payment model for both your brick-and-mortar and online stores. Knowing how rates and fees affect your retail business will put you ahead of the curve and allow you to find the solution that is most beneficial to your company.

Types of Credit Card Fees You Encounter

When you open a merchant account, you know that you will need to pay credit card fees in order to accept credit cards. However, with some processing companies, it can be difficult to decipher just where your money is going each month. Did your fees increase based on the number of transactions completed or are there hidden fees built into your contract that took effect? Knowing the types of fees you’ll encounter allows you to better plan out your strategy so that it is most beneficial to your business.

• Flat Fee – A flat fee is the rate you pay to your credit card processing company each month as the cost of doing business. There may be other flat fees associated with your account, but these remain the same each month.
• Transactional Fee – These fees are based on the number of transactions completed. These will vary based on the card issuer, such as MasterCard or Visa, which sets the rate that will be applied to the value of the transactions.
• Incidentals – Other fees you may or may not be assessed each month include chargebacks. For example, if your business does not have any chargebacks in a billing cycle, you will not see the fee on your statement.

Tips for Lowering Your Processing Fees

The key is to work with a credit card merchant processing company that is transparent when it comes to fees. Once you know the different types of fees you will need to pay, you will be able to better plan your operating budget. This will allow you to use credit card payments as a beneficial investment for your retail business rather than a financial burden.

As you begin researching potential credit card processors, learn about the credit card fees and structure before entering into an agreement. Top processing companies are upfront about all fees and costs associated with opening and managing your merchant account.

Another great way to keeping your fees low is to lock in a guaranteed rate with a processor that offers it. In addition to making it easier to forecast expenses each month, a guaranteed rate opens up the possibility of growth by offering your customers even more ways to pay for products.

Begin by talking to a representative at Leap Payments to discuss the credit card processing solution your retail business needs. Contact us today at (800) 993-6300 to learn more.

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