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Expenses associated with credit card processing

The only thing constant in this world is change, and with the rapid technological changes happening and the requirement to go digital has become the need of the hour. You can be a novice or an old timer merchant in your industry, to sustain we have to adapt to the changes. <br>

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Expenses associated with credit card processing

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  1. Expensesassociatedwithcreditcardprocessing. • Theonlythingconstantinthisworldis change,andwiththerapidtechnological changeshappeningandtherequirementtogodigitalhasbecometheneedofthe hour. Youcan beanoviceoranoldtimermerchantinyourindustry,tosustainwe have to adapt tothechanges. • ThisistheplacewhereweRadiantPaystep in,weprovideourclientswithupto dateservicesby keepingupwiththenewtechnologicaladvancement.Before selectinganyprocessingserviceprovideryoushouldknowwhatyouaregettinginto. Belowarethedifferentfeesorchargeswhich comeintothepicturesthatamerchant should beawareof: • MerchantDiscount Rate • Amerchantischargedtoprocessdebitorcredit cardpaymenttransactions. One shouldn'tnotconsiderthis chargebecauseyoucompulsorilyhave to complywiththoseandcanaffecttheendprofitmargin.Theseratestypically rangebetween 1%-3%. • Interchangefees • This feeis paidto thecardissuingbank byamerchantwitheverycreditand debit card transaction. The rate at which fees are supposed to be paid is not fixedandrevisedatregularintervalsoftime.Theratesaredifferentfordebit card and credit cardand on every financial transaction it is charged respectively. • Assessment/ServiceFee • It is chargeddependinguponthetotalnumberofmonthlysaletransactions. This feeis paid tothecreditcardnetworks.Itusuallyisasmallpercentage butis affectedbyfactorslikeyourmonthlysalesvolumeorriskinvolved. • Markupfee/processingfee • Asthename suggests, itis thefeechargedforcoveringthecost of processingbycreditcardprocessingcompanies.Itchangesdependingupon the planchosen. • ChargebackFee • It is thefeechargedbyacquiringbankstocovertheadministrativeexpenses incurredwhenprocessingthechargeback.Acreditcardchargebackoccurs whenthecardholderdisputesapreviouscreditcardchargeandwantsto nullifythesalestransaction.Essentiallythecustomerasksthecardissuing bankto return thosefunds tothe customer’sbank account. • It is thechargewhichispressedbyacquiringbankstocoveradministrative expenseswhichwereincurredwhileprocessingchargeback. • It mightseemchaoticbutRadiantPayhasawiderangeofsolutionsand servicesfor seamless operationand willaddvaluetoyourbusiness

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