Prepared for Sample Business Credit Card Processing Report

Your Fees: $1,187.00Competitive Fees: $957.04

Your Fees Competitive Fees

You may be paying $229.96 more than you should be!

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1. Rate Comparison

• Your current processing fees may be overpriced by $229.96 per month.
• Your fees are an overall rate of 2.54%, consisting of 2.25% volume fees and $0.22 per transaction fees.

A good deal for a merchant of your size and type would be an overall rate of 2.04%.

If your processor assesses a standard per-transaction markup of $0.10, then we estimate their percentage markup to be 0.68%.

2. Credit Card Processing Fee Breakdown

The fees you pay are split between three parties: the banks that comprise the Visa and Mastercard network, Visa and Mastercard themselves, and the Credit Card Processor. Immediately below is a breakdown of how your fees are split.

You should know more about:

• Interchange

  Interchange is the set of rules that define how much of a cut the issuing bank gets to keep from the credit card transaction. Read more

• Assessment Fees

  Assessment represent the fees that you pay directly to Visa and Mastercard. They are charged as a small percentage of each sale, and are non-negotiable. Read more

• Processor Fees

  Your credit card processor may charge its own fees, in addition to marking up the standard interchange rates. Read more

3. Recommendations

Downgrades

Sometimes your overall percentage rate is inflated due to downgraded transactions.Downgrades are caused when a transaction is categorized differently by your processor, making you pay a higher percentage rate for that transaction. For instance, rewards credit cards are often downgraded by processors. The processor is charged a higher rate for these cards, and they often pass the increased rate on to you with a much higher markup attached. Since rewards make up 70% of the transactions, this can lead you to pay a much higher rate than the one you were originally quoted.

Downgraded transactions are very common, and can cause a dramatic difference between the effective percentage fees you are paying (shown above), and the percentage rates that you negotiated when you signed your merchant account contract.

The best way to avoid suprising downgraded rates is to require an Interchange Plus contract.

Interchange Plus contracts state the exact markup that you will pay for each interchange category, making it completely clear how much you will be charged.

Extra Fees

Some credit card processors tack on excessive extra fees.Excessive statement fees, batching fees, and online access fees can inflate the percentages that we calculated above. In general, you cannot negotiate these fees, however you should be aware of the reasonable ranges for each fee type so that you can avoid entering into a contract with a greedy processor.

Look for a Credit Card Processor who is willing to be completely transparent about the fees that will be included on your monthly bill.

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The best way to save money on your Credit Card Processing

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