When shopping for a credit card processor, there are a number of things to look for in determining which company will truly offer the best deal. One important item to evaluate is how the processor assesses fees.
All processors will assess merchants fees for services. Some are legitimate and some are “junk fees.” Junk fees are fees that you pay and for which you receive very little or nothing of value in return. Some common junk fees are:
- Batch Fees
- Programming Fees
- Cancellation Fees
Ask each processor their policies on these fees and if they do charge them, how much they charge. The same is true for legitimate fees such as:
- Application Fees
- Statement Fees
- Minimum Fees
Confirm that minimum fees are in fact, just that – a minimum and not something that gets added onto your total fees.
Some merchants, as members of professional bodies or trade associations, may be benefiting from a low rate. Unfortunately, they frequently have to pay fixed annual subscription fees of several hundred dollars, as well as minimum monthly fees. Too often a provider advertising a low rate will use junk fees to make up the difference.
Talk to us about how our office can help you find a credit card service with extremely competitive rates and no junk fees.
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Great tips…we just met and talked to about 3 different processors in the last month and your article is right on the money.