If you are running any sort of business it is very essential to be able to accept credit card payments, for which you will be charged by such account providers. Here are few points keep in mind about credit card processing rates.
Fees for Setup
This fee will be charged once, when you initially create your merchant account and it will configure your processing terminals. This is typically part of any credit card processing rates.
Discount Rate
This rate is charged at a certain percentage of the transaction. This could vary between 1 to 3 percent depending on the type of credit or debit card used by the customer.
Qualified and Nonqualified Rate
A qualified rate is the lowest possible rate charged when the transaction is most secure and involves physical card swiping. Nonqualified rate starts to rise higher as the level of security of the transaction goes down. This would include instances when orders are processed online or through mail or telephone. These rates would be higher by at least one percent, up to a maximum of 2.5 percent, than the qualified rates.
Chargeback Rate
Whenever goods are returned or the order is cancelled, you will be reversing the entry, for which there is a chargeback rate which varies according to the gateway and Credit Card Company.
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These are the main processing rates any business will encounter. Apart from these there could be other fees like a minimum monthly charge and transaction fees and so on depending on the gateway you have chosen. If you’re planning to apply for any credit card soon, it’s very much recommended that you check on any credit card processing rates that apply to your desired credit card.
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