What Fees am I Paying and Why?
In most situations, there are 3 people that charge a fee: the card issuing bank or credit union (Interchange,) the card brand (V/MC/Disc/Amex,) and the credit card processor. If your logo is on the card or you’re processing the payment, you’re charging a fee on the transaction.
Most business owners are not in a position to negotiate the fees that are charged. So, it does not matter who the processor is; you’re still going to be paying those fees in some way.
How Can Rate Tracker Help Small Business Owners?
Interchange fees and card brand fees are non-negotiable in most situations and can sometimes fluctuate based on average ticket, types of cards accepted, and how cards are processed. Interchange Fees + Card Brand Fees + Processor Fees = Effective Rate. If there’s a significant increase in the Effective Rate, it usually is because the Processor increased their profit per transaction or per month, ultimately taking more money from the business. Rate Tracker adds value by automatically monitoring the total cost imposed on a business, and immediately catches significant rate or cost increases.
Learn More About the Benefits of Rate Tracker
If you are interested in learning more about Rate Tracker, continue browsing our website or contact us today!