Are you a business owner who is concerned about credit card processing rates cutting into your profit margins? While it is important to evaluate your expenses and avoid unnecessary fees, certain costs are essential to keep your business running. Credit card processing fees fall into this category.
Scam Phone Calls
The confusion about credit card processing rates often arises because of phone calls received by business owners. How often have you had a salesperson leave a message promising 1% processing fees if you switch to their service? Be aware: this rate is too good to be true!
Unfortunately, anyone offering a 1% transaction rate is trying to work an angle with the intention of charging you more in the future. If a company is honoring the 1% rate, then it means that they are losing money every time a transaction goes through.
The truth is that if you are offered 1%, then it is likely a base rate… which means you will be surprised by added transaction costs. The merchant provider needs to make money, so they use 1% as a way to get you in the door, then add other costs to make up the difference.
Why is 1% a False Claim?
If 1% is offered by a credit card processing company, it is often a false claim. What they really mean is that you will pay 1% ON TOP of the interchange fees. Each card brand (Visa, American Express, MasterCard, etc.) has set interchange fees that run as high as 2.250% on each transaction.
In many situations, the 1% offer doesn’t even cover the interchange fees that will be going to the card provider, which means there is no room for profit for the merchant services provider.
Choose a Trusted Provider
The best thing you can do is choose a trusted credit card processing provider so you can avoid false claims and questionable sales tactics. At Veripay, we strive to offer transparency and honesty to every client. You are invited to call us any time to learn about the services that are available for your business.