There are few entities that are involved in the Credit Card Fee processing. A normal Credit Card Process looks so easy but it is really not. It looks like that you start to run the credit card when your customer gives it to you. But it is not as easier as it looks so. Behind the scenes, it is completely a complex picture.

Plays a significant role

With each and every transaction there five entities will be involved Even each entity plays a significant role. You will be having the information including the name of the credit card brand, name of the customer’s bank, the credit card network service, and the processor and you have to run it using these all.

How Merchant Services Reseller Program works

Each and every entity that is involved in the merchant services reseller program will be charging you a fee for each of your transactions. There is a term called “interchange fee” this supposed to be a fee that comes directly from your customer’s bank. The card brand will be charging an assessment fee and on the other side authorization fee will be charged by the card network and at the end processor will charge you a discount rate.

Communicate the fees

The interaction would be very minimal with the very first three entities and that is the reason why the processor exists. The role of the processor is to keep you in the game; it will maintain your merchant services reseller program and will communicate the fees to you.

How to haggle with the credit card to lower all these fees

There are no possibilities to lower all the above-mentioned fees. The only rate that could be possibly changed is the discount rate which is mainly controlled by the processor but it could make a huge difference in the monthly statement.

How to make the fees lower!

While processors will be showing you the plan and offer you the three pricing plans that include flat card merchant credit card process, interchange plus, tiered pricing.

How Flat Rate Merchant Credit Card Processing works

In Flat Rate Merchant Credit Card Processing, it works on a monthly basis, which is called a monthly maintenance fee which referred to as a monthly membership. Usually, it is a fixed dollar amount that a business pays to the merchant services providers. It is a percentage that a business pays for every transaction and it is a fixed percentage. Though it looks so simple it will be ending up costing more money. And it happens just because you are always paying more than the interchange that is the direct cost of processing.

Conclusion

The rest amount is pocketed by the merchant services providers. It might a great opportunity for those businesses who running a very low volume or the others who rarely accept the credit cards. So this is not done that your processor is making more money out of your every transaction while you are not able to do it.

Amelia Sewell