Meet Your Merchant Prccessor

by Richard A Kasey - Date: 2010-10-15 - Word Count: 455 Share This!

Getting to know your High Risk Credit Card Processing better. By educating yourself on the process of how it works can potentially earn you more profit to your bottom line.

To begin, as a merchant you understand that every time a customer swipes their credit card or debit card for a purchase you are getting charged, in essence giving up some of your profit for that item. I suppose you have a choice whether or not to accept credit cards or not. Although, potentially losing a large percentage of your business, which is not the solution.

Every month goes by as you attempt to review your monthly processing statement and you recoil as you try to decipher the costs. Ouch! These statements are so hard to distinguish it may take rocket science to figure it all out. But, do not give up on learning more on this very important business topic.
So sorry to tell you that there is real no cure for the common fees and rates related to credit card processing. However, there can be solutions for you that might bring your costs down. As you continue reading you will learn how.
It is common to have been approached more that a few times by salespeople that want to save you thousands of money on your high risk credit card processing. Can they really do this? Well, if it sounds too good to be true, you must know that it usually is. I realize that you want more of a permanent solution and not just to save initially.

We do want you to know however, that the processors do not make a large profit from purchases. They really only make about 25 cents for every one hundred dollars spent. The credit card companies set the bulk of the fees and rates and that is what you pay them.

Your merchant provider should also be your consultant. They should be helping to work with the bank putting you into the best merchant service possible for your business. But, you are the business owner and should take responsibility in educating yourself on the subject further. This will only save you money in the long run. Some key points to find our more about are: Learn more about what qualified, mid-qualified and non-qualified are. Understand different transactions and credit card types will fall into several categories. Is tier pricing the best way to go? What about surcharges, can you get these reduced? Discover more about cost plus pricing and if you qualify.

With this array of information this should give you more of an understanding when you read your monthly merchant account statement. Now you should be able to reduce cost with your high risk credit card processing and increase your business profit.

Related Tags: merchant accounts, payment gatemway

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