Credit Card Processing Rates and Fees Explained

If you have a business and you are thinking of accepting credit cards for payment, you may have some questions about the cost and breakdown of credit card processing. You may be confused by the fees and credit card processing rates, but do not let that stop you from accepting credit cards. By accepting credit cards, you give your customers an easy, convenient way to pay, but it also will help you increase sales.

The first step in the process it to understand the merchant accounts. There are two different types of merchant accounts with up to 7 subcategories. It is imperative that you sign up for the correct merchant account to get the correct credit card processing rates.

If you are a retail merchant, you may qualify for the retail merchant rates. This account offers the lowest discount credit card processing rates. They also offer low cost fees, but you must have a business that swipes 80% or more of the credit card transactions through a terminal.

If you are a mail order merchant, you will not be swiping actual credit cards, but processing them over the phone or though the mail. The Mail Order Merchant Account requires that you do most of the credit card processing through a keypad of a credit card terminal. The mail order rates can be as low as 1.89%. If you have an Internet business, be sure to check out the Internet Merchant Account. That is the account for online business owners and also offers credit card processing rates as low as 1.89%. If for whatever reason, you take credit card numbers, but process them later, you will need the Store and Forward Merchant Account.

With all the different types of merchant accounts available, it is necessary for you to find out which one is the proper one to use to make sure you get low cost fees and low credit card processing rates.