Saturday, April 28, 2007

Mobile Credit Card Processing

Best Credit Card Processing Rates
By Shane Penrod

Everyone goes into business to make money, so why spend more of
your profits on expensive transaction fees, Website maintenance,
service agreements and high credit card processing rates? When
you take time to shop for the best deals, you can save quite a
bit of money that can be used to good purpose in other parts of
your business. Start shopping for the best credit card
processing rates and open a merchant account.

You will first need to find a reputable bank or credit union
that will agree to extend a merchant account to you for this
purpose. To get approved, you will need a solid credit history,
a reasonable business plan, and documentation to show that you
are able to manage the costs associated with credit card
processing rates. Typically, these include an installation fee
for credit card processing equipment, a monthly gateway fee for
your financial host, a transaction fee of a few cents per each
or an overall percentage total each month. You also may be
offered Website service that will entail a hosting fee, a
service contract cost, and a designer’s or updating service
fee. Be sure to carefully read the terms of any contract that
you receive. Never sign something that you don’t understand or
with which you cannot completely agree. Your company may have
to pay for a monthly minimum up to a certain number of
transactions, after which the balance for that month do not
require additional fees.

Credit card processing rates can vary by company or by
processor program. Some companies charge no installation fee,
while others require a one-time cost of a few hundred dollars,
depending on the program’s complexity. You may have to pay
between 15 and 25 cents per transaction, or you could opt to
pay a monthly percentage for the entire amount of business
generated by your credit card processing unit; this amount
often falls below 2%.

It is always a good idea to compare rates among competing
financial institutions. If you really like the services offered
by one merchant account company but prefer the lower rates of a
second company, tell the first one about the competitor’s lower
rates, and perhaps the first company will meet or beat the lower
cost in order to get your business. At first, you may want to
keep the customer’s interests in mind when shopping for credit
card processing rates. In other words, passing on the savings
of a particular program to your customers will keep them coming
back to do business with you. If your rates are too high or not
competitive enough, they may decide to take their business

As you plan to set up your new credit card processing service
rates, it may help to let them know in advance that this
program is coming so they can prepare and perhaps even help to
get the word out to other potential customers. Then, after
installing your new credit card processor, you should not hear
complaints that anyone was blindsided or treated unfairly. If
someone does complain, politely remind them of the earlier

When you are ready to start processing credit card payments,
don’t be tempted to go for the option with the most features or
the most sophisticated set-up. Opt for a system that will best
suit your company needs and your customers’ interests, as well
as offering the best credit card processing rates.

About the Author: Shane Penrod is the founder of Specializing in allowing merchants
the ability to shop and compare multiple quotes from national
merchant account providers. For free quotes on merchant account
rates and fees, please go to


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