Credit Processing

Video Transcription

Welcome, today we are going to talk about Credit Processing. A lot of people search Google or go to different search engine and all they type in is credit processing. A lot of time what they really mean to search for is credit card processing. Which mean they might be a merchant and want to know how to accept credit card for their business?

First, a lot of merchant tend to say that they want to accept credit card because it provides them with a fast and easy solution for the customers. What if a customer walks in to your business sometimes they may not have cash on them. Consumers spend on average 2 ½ times more when they use a credit card compare to cash because they know if they use a credit card they can pay for it later they don't have to pay for it right away, they don't have to go to the ATM or bank to get cash which makes it inconvenient for them. That's why a lot of merchant today want to accept credit cards so that they can increase their sale.

As a merchant you want to be able to understand the cost related to credit card processing. You have your qualified and non-qualified rate which means the bigger the transaction amount, the more you are going to pay in fees. You also have what's called interact which is a flat fee per transaction, whether the transaction amount is $1000 or $20 dollars the fee remains the same.

Then you have the terminal cost, there are three different options. You can either lease the terminal, do a month to month rental or purchased the terminal. Your account maintenance fee which covers your statement fee and anything associated with your account and customer service. And lastly your application fee which you pay when you open the account. That's pretty much all for credit processing. Thank you.