For the security of your business and your credit card payment processing, having a processor you can trust is important and will help you run your business smoothly. It is essential that you know who you are working with when you work with a processor to help with transparent credit card payment processing for your business.

A payment processor is a wise investment for your business, but there is a lot that goes into the process of relying on one, and a big part of that is knowing who is involved and what fees are associated. A thorough guide in how a processor goes about offering such transparent credit card payment processing will help you understand what they will do for your business.

 

Who Is Involved in Transparent Credit Card Payment Processing

Between the customer and the merchant, there are a few other entities that take part in the action of transparent credit card payment processing. These are typically referred to as the “middlemen” of the system.

Credit Card Companies: Of course, the actual cards you’re processing have to come from somewhere. These are companies like Visa, Mastercard, and American Express among others. They enforce the rules that everyone using payment processing follows.

Credit Card Issuing Banks: These institutions, such as Wells Fargo and Citibank, issue credit cards to consumers. Some companies like Discover or American Express act as their own bank and the card issuer.

Credit Card Processors: These are the messengers between the merchants and the credit card companies. In some instances, a business will work with multiple payment processors for different components of their business. They also assist with payment gateways or the physical routes that credit card payments go through, like online shopping carts. Credit card processors also sometimes take on the dual role of Merchant Account Provider. Merchant Account Providers are companies who handle sales, customer support, and more credit card processing. Sometimes these are financial institutions or independent sales organizations (ISO’s) depending on the situation.

 

What It Costs to Receive Transparent Credit Card Payment Processing

No good business resource comes free, but a payment processor, like Payline, is definitely worth the investment. However, a big part of transparency is knowing exactly what you will be paying, and knowing about all of these fees upfront. Payline values transparency and makes sure you’re aware of all the necessary fees. Here’s a look at the types of fees that may be involved.

Transactional Fees: These are fees associated with running transactions, usually the biggest cost with merchant accounts.

Flat Fees: These are sometimes in addition to transactional fees, and they can vary from name, applicability, and value. A few types of flat fees are payment gateway, terminal, and early-termination. While Payline does not have early-termination fees, some processors will charge them. You may see some of these types of fees on your monthly statements depending on the payment processor you use.

Incidental Fees: These fees will only occur as necessary. For instance, if there are ever chargebacks to deal with, incidental fees may be applied. There are a few different types of incidental fees, such as voice authorization, retrieval request, and address verification. Some processors will have these fees, and some will not.

You may initially feel overwhelmed when considering all of the fees that may be incurred with credit card payment processing, but fear not! Payment processors, such as Payline, are very helpful and are ready to work with you to find the best balance of services and costs for your business. NerdWallet also has a few tips on how you can reduce the high cost of some fees with a processor.

  • There are lots of different payment processors to choose from, and finding the right one for you may take a little time, but take that time. Comparison shopping will help to find the best fit for your business. Ask for the total rate that you’ll be charged, including any fees, to get the best idea of the top contenders for your budget, and whether any fees can be waived.
  • When entering credit card information for transactions, swiping is cheaper over manual entry in terms of the transaction fee you’ll be charged. The risk of fraud due to the fact that manual entries are able to be hacked without a physical card is what causes the transaction fee amount to be higher for manual entry.
  • For businesses that handle smaller transactions, set a minimum amount for credit card sales.

There is a lot that goes into transparent credit card payment processing, but fortunately, there is always a way to make it work for your business. Payment processing providers like Payline are excellent resources that will walk you through rates, fees and all of the services needed, as well as continuous support so that you can offer your customers the best experience possible, so don’t let the fees intimidate you. A little extra help from a payment processor is a worthwhile investment.

Payline is dedicated to keeping your business transactions on track and running smoothly. Find out how we can help you with your business here. 

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This piece was written by Lauren Minning, Content Specialist for Payline.