One of the most critical decisions impacting profits for any business that needs to accept credit cards is the company they choose to provide merchant services. And closely tied to it are the supporting sales channels from websites to point-of-sale equipment requiring payment processingservices. This article will explore what it means to accept credit cards through a virtual terminal or via physical terminals and what to expect from fee structures in credit card processing.
Credit Card Processing via Physical Terminals
When you need to process payments from a brick-and-mortar location, credit card processing is typically associated with traditional physical terminals. With this type of account, look for competitive rates, even on debit card transactions completed with a PIN—the ideal in affordability for merchants that need to accept credit cards of all types.
Offering an innovative credit card processing option via physical terminals, Switch Commerce gives merchants the flexibility to use their own equipment or to purchase credit card terminals at a value price. With a physical terminal operated through Switch Commerce, batch transactions each day and receive access to your earnings in as little as 36 to 48 hours. Learn more about a physical terminal from Switch Commerce.
Credit Card Processing via Virtual Terminal
When you need to process payments online and anywhere your sales agents may roam,credit card processing needs to be as simple as entering payment information anywhere you secure internet access. This type of credit card processing is called a “virtual terminal” account; look for the latest technology coupled with the ability to accept credit cards without hardware.
As a fully internet-based debit and credit card processing service, a Switch Commerce virtual terminal gives merchants an efficient way to pass over equipment and software maintenance issues with a solution that supports multiple simultaneous users as well. Process transactions on the web and manage your merchant account from an always-on online dashboard for maximum convenience. Learn more about a virtual terminal from Switch Commerce.
Narrowing the Field of Merchant Account Providers
There are many online merchant account providers that provide secure payment processing services. Because there are so many credit card processing companies available, it is important to understand how merchant services differ. With your reputation as a merchant and your future revenue on the line, choosing a reliable, trustworthy provider is more critical than ever—and when it comes to credit card processing, leading-edge security features can give you an edge while protecting you and your customers on every transaction.
Using payment processing fees as a focal point for comparing credit card processing companies can be daunting—the gulf of difference among fees charged for merchant services can be vast. Often, it’s easier to compare merchant services providers that simplify fees and monthly charges, giving you a solid starting point to estimate your liabilities according to the level of revenue; however, typically, there is a great deal of variation based on the type of credit card accepted. Expect typical credit card processing expenses to include a statement fee, merchant services fee, PCI fee, annual fee and a return fee.
How Credit Card Processing Fees Work
Historically, small and medium-size companies have accessed what’s known as “multi-tier pricing” for credit card processing. This payment processing is usually set up with three levels, including “non-qualified”, “mid-qualified”, and “qualified” transactions, a somewhat antiquated pricing system today. Tiered pricing relays the preset price, based on a percentage of the transaction at the time of credit card processing, back to the merchant. Under this model, the business owner pays a markup calculated each month from the total amount of transactions by card type.
Because the major credit card companies’ interchange categories vary so widely, frequently tiered pricing divvies these categories into one of the three-tier brackets—especially beneficial for merchants that only accept the most common credit cards. With more frequent debit card transactions, or credit card processing from cards attached to incentive programs and corporate cards, merchant services fees increase–a direct result of payment processing that falls squarely into the more expensive “mid” or “non-qualified” transaction brackets.
Evaluating Multi-tier Credit Card Processing
For businesses able to ascertain the volume and types of cards customers commonly use to purchase from you, the right decision in credit card processing becomes clearer. Evaluating a three-tier credit card processing agreement in use often requires active reviewing of the monthly statement, noting the number of mid and unqualified transactions. Increases in these transactions can point to alternative fee structures that help business owners with the means to restructure monthly credit card processing expenses. Talk to a Switch Commerce agent to find out what options exist for your business.
Switch Commerce merchant services provide basic and preferred pricing to clients in the market for world-class debit and credit card processing at a fair price. Add ATM portfolio management and convenient ATM processing that’s safe, secure and reliable to cover all your business’ payment processing needs.
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