Credit Card Processing

I am paying about 2.25% on average in a given month for credit card sales. That is not per transaction, rather 2.25% of my total sales goes to those people.

I am looking to acquire a business where that number is less than 1%. Is that around what you guys are at, or does that seem fishy to anyone?

The potential acquisition is a franchise so I didn’t know if they got better rates?

I have not been able to find anything under 1.75%

But that would be 1.75% of credit card sales. If you take credit card fees that you pay in a given month and divide by total sales (including cash sales and check sales) what is your %?

Are you close to 0.8% like this seller?

That was my question, I don’t think I worded clearly.


I am at .68% so that does not seem unrealistic although I think it doesn’t matter as much as your effective rate b/c the % you are asking for is affected by the amount of non-credit sales

Daddio here is one for 1.6% on transactions under $50.00

…Also the CRFA advertises as low as 1.58%… … _rates.asp


PS…These a Canadian services…

If the 0.8% is based upon TOTAL Sales that means they have more Cash Sales than credit.

If the percentage is based on Credit Card Sales something is “Fishy”, as you say.

The reason I say this is EVERY processor in the US owes the Issuing Bank and VISA/MC Interchange and assesmments. The interchange IS more than 0.80%.

For example;
Small Ticket Debit (less than $20) VISA/MC is 1.55% + 4 cents
V/MC Rest Debit 1.19% + 10cents

Regular Credit V/MC 1.63%/1.64% + 10 cents repsectively.

Remember these rates are the WHOLESALE Cost. The processor still charges a per item or percentage to handle the transaction. THAT total rate is typically what you see on your statements and is kown as the Discount Rate, unless you have been set up with Cost Plus Pricing.