The Business Guide to Credit Card Processing

When it comes to deciding on a credit card processing company, first determine what your needs are and then figure out the equipment and costs are associated.

If you operate a retail store where you only process credit cards in one location, you won't need to have a wireless account or portable equipment. However, if you want the flexibility to accept credit cards off-location, you'll need to think about wireless accounts and handheld equipment. Here is a chart of some of the equipment fees you can anticipate:

Besides the cost of equipment, many credit card processing companies charge additional fees.  Be careful of any hidden fees that might be written in a contract. For example, some companies will give you a discounted rate depending on the volume of charges coming in - however, if one month the volume doesn't reach the average, you'll still get charged plus any additional processing fees. 

The average percentage charge ranges anywhere from 1.5-2% for transaction where the credit card is present.  If you have an E-commerce site, you could be looking at a 2.2-3% discount rate.  Another thing to take into consideration is that some companies require a monthly minimum which on average is $20 a month.

Along with equipment and percentage rates, you'll need to find out the turn around processing time. Some companies can take up to 30 days before delivering the money. Being aware and planning ahead will help you with any cash flow needs and issues.

Last, find out what risk category your business is in. The rates will be higher if you operate a 'risky' business with large chargebacks and online processing sites. Determining your risk and comparing rates with other businesses with the same risk will give you a more accurate rate on what you can or cannot negotiate on. 

Once you way all the different rates, and costs for the equipment you need the credit card processing company that best fits your company will become relevant.  It might take some digging around, but in the end it will be worth it.