How to Find the Best Credit Card Processing Rates

If you are going to start accepting credit cards for your business, you want to make sure you are maximizing your profits and lessening the credit card processing rates you will have to pay. Though you will almost certainly find you will get more customers are larger profits, when you find the cheapest credit card processing rates you will be able to get the most of your decision to accept credit cards.

The normal way you would compare rates might not work when it comes to credit card processing rates. When it comes to these rates, it can be difficult to simply list rates and fees and compare them side by side because different companies offer different rates and on top of that, some companies charge you for some things that others will not. Confused? Let’s break it down.

One of the fees that some processing companies charge is called the “statement fee”. Though it is usually only about $5 - $10 a month, you may think a company that advertises a $0 statement fee will be a better value, but not so fast! Typically what credit card processors will do is advertise a $0 fee of some kind, but take that $10 a month, for instance, and spread it through their other rates, so it really isn’t that great of a deal after all.

In order to find the best credit card processing rates, in addition to watching for sales tricks as mentioned above, is to watch for a cancellation fee. Because companies change rates often, you may find that after a set amount of time, the rates you started paying have risen and you have found a deal with another company. If you are going to be charged a cancellation fee of several $100, it probably won’t be worth it. If you want the freedom to cancel at any time, you may save a lot of money with a company that doesn’t have a cancellation fee.

Another way you can save money on card processing rates is to stay away from free equipment offers.  Yes, stay away from them. Just because an ad says the equipment is free, it almost is always “free” with a little asterisk next to it with more fees and higher rates. If you want to save money with equipment, buy it outright.  Don’t fall for the “free” offers and never lease, unless you are only using the equipment for a few weeks.

Finally, the best way to save money on card processing rates is to read the fine print. Though it sounds quite simple, so many people do not read the fine print and they end up paying a lot of money they weren’t expecting. Remember, once you sign the contract, you are required to pay the fee. Reading all of the fine print will allow you to know if you should expect rate hikes or any other hidden fees that may be associated with this account. It is always better to take the time to read than be surprised when your invoice comes.