Credit card processing is convenient, but it may be costing you more than you think. Most merchants these days have some form of mobile or in-field credit processing options. You can even get some store-bought units with little effort. All you need is a smartphone, but who pays for the convenience? What interest rate are you getting? Are you paying a monthly fee? Do you have a minimum monthly amount to preserve your interest rate? Here are a few points to keep in mind when deciding what’s right for you.
Your major “store-bought” swipe brands like Square, Paypal Here Reader, or Intuit GoPayment Reader are very similar. You get your swipes for free, but are paying 2.7 to 2.75 per swipe. A per-transaction fee is also common. Some processors will have options for interest-free transactions for a larger monthly fee and a high monthly minimum for total transactions.
Most of your standard merchant services will also offer mobile swipes in addition to the common “Point Of Sale” swipes you may have at your counter. Unlike the store-bought processors, you apply for services with these companies. Interest rates will be based on many factors. One factor is your processing method. Are you getting a “card present rate?” The average processing cost for a retail business where cards are present is 1.3% – 2%. The average cost for card-not-present businesses is 2.30% – 2.75%. Average ticket size is another factor. This relates to the total amount of the sale. The benefit here is a lower swipe rate per charge with no per transaction fee. Monthly fees are usually lower, as well. Beacon uses Card Present processing, so you get the best rate!
At the end of the day, you really need to think about what benefits you the most. Over-the-counter swipes are easy to acquire, but have a higher per transaction cost. If your volume is low, the ease of use may be worthwhile. If your credit card payments are in the thousands, tens of thousands, or higher, you may want to steer clear of the store-bought swipes. It’s probably time to seek out a better option, and keep your money in your pocket.
Mike Haney
National Sales Director
Beacon Software Company
(440) 237-6653 x107 – Direct
(866) 437-6653 – Sales
(440) 435-2855 – Fax
www.beaconsoftco.com
