by Will Schneider
Especially in this economy, it’s vitally important to make sure that your company is doing everything that they can to keep costs in line, including making sure that your using the best merchant accounts. Credit card processing fees can add up significantly, especially as your monthly sales increases. For every $10,000 in credit card payments processed, you can expect to pay $300 to $400 per month in credit card processing fee – or more! So saving even a half of a percent, while not seeming like very much, can add another $50 per month into your pocket. This translates into $600 per year! And that’s only at a $10,000 per month level. Think if your business starts accepting significantly more in credit card payments.
So when you’re looking for the best merchant accounts and comparing among many different options, be sure to read all of the fine print. Like many other industries, merchant account companies like to play the shell game. Oftentimes, they’ll lure you in with low rates, only to hammer you with per transaction fees or monthly fees as well. And sometimes the opposite is true – they’ll promise not to charge you extra fees, but will increase the transactional fee percentage charged. Either way, pay close attention to all of the fees when comparing different credit card processing vendors.
And one final thing when making a choice: don’t mistake convenience with the right choice. Many merchants simply use the merchant account option that is provided through their platform, such as eBay or Amazon. While it is easy to use these options, they may not be the lowest priced option. So be extremely careful when looking at the options, and you could end up saving your company a great deal of money over time!