Help me understand credit card processing fees

[snowman]

I tried searching and came up with cost plus, interchange fees, etc.

I’m mostly trying to figure out what percentage of each credit card transaction will be taken by any given processor. I’m also open to suggestions on who to use.

 

[perfect_pizzas]

Well first, study the irs tax code and become an expert at it. Then master quantum physics. If you can do that, you have a chance to begin to unravel the credit card fee schedule. Seriously though, they go out of their way to make it extremely difficult to compare rates. In general, you can expect to pay between 2.5 and 4 percent of your sales to your credit card processor. This will vary based on sales volume, average ticket price, percent of swiped versus keyed transactions, and depending on how good of a deal you negotiate. As much as I hate to pay them, It has become a necessary evil in todays society.

 

[paul7979]

Just to be clear, I think Perfect Pizzas meant 2.5 to 4 percent of your credit card sales. I’m on a cost plus 8 cents a transaction with most of my credit card transactions being keyed. My monthly fees are pretty consistent at between 3.1 and 3.3 percent. Over all credit card sales are now approaching 60% of my sales so credit card fees are getting closer to my rent as far as costs. If you want, I can email you one of my statements and you can try to make sense out of it.

 

[RobT]

just get yourself into Cost +, Or interchange +.

1)Limit your per swipes to like 10 cents each,
2)Get $5-$10 Statement Fee
3)$0 Cancel Fee

Demand it.

 

[bodegahwy]

We pay cost plus 6 cents. About 75% of our cc transactions are keyed in being delivery. Actual all-in cost is pretty consistant at 2.7% of CC sales. We use Heartland.

 

[Jennifer]

Snowman,

One of my colleagues wrote an article a while back explaining credit card processing fees and rate calculations.

I dug up a copy – choose March 2010 from the dropdown list to see the article:

http://www.speedlinesolutions.com/library/newsletter_archive.aspx

 

[pcuezze]

I would like to understand women. How does that compare to cc fees?

 

[Bubba]

Reminds me of the fellow who was allowed to ask Jesus for 1 wish.

He asked for a bridge to span the United States to Europe. He wanted to be able to visit often without the fear of flying. He went into great detail about how many lanes and how often to have an island to supply gas and food.

Jesus interrupted him and said it was near impossible and he would not be able to fulfill his wish.

He thought a minute and smiled and said, " Would you give me the knowledge and insight to understand women?".

Jesus thought a minute and smiled and said, “Would you like 2 lanes or 4?”

Bubba