Cheap credit card terminals1/16/2024 ![]() ![]() ![]() ![]() Often, merchant service payment terminals, card readers, and eCommerce payment portals that do not charge a monthly fee, come with much higher transaction charges of 2.5%+. How to Know if You're Paying Too Much in Payment Processing Fees? However, many small business owners are not aware that as they grow the commission fees being charged on their transactions are skyrocketing their overall costs due to the high % fee on credit card, debit card, and contactless transactions. Many small companies start out with card machine providers where payment terminals have no set monthly fees - This can be a low cost option if you’re just starting up and do not expect to transact very much in the beginning. But just like that long lost schoolyard crush, 90% of the time your first choice for business start-up isn’t always the best choice for your business going forward. There are lots of different options available to businesses with various fee schedules and payment plans. The major problem that many SME’s in Ireland face when choosing the cheapest payment processor or merchant services provider can in often be more about timing than pricing. The Problem with Choosing a Suitable Card Payment Processor Try to avoid missed payment opportunities as the demand and expectation for cashless payments continues to grow rapidly. If you’re not yet accepting any form of credit or debit card payments we would suggest taking a minute to understand just how much revenue potential your company may be losing out. This is of course normal when paying % fees on transactions but now could be a good time to shop around and ensure you're receiving the best rates. You might just find that as you grow your business, so too are your payment processing fees. Review your terminal fees provided by your merchant service provider or payment processing partner. If you currently accept credit or debit card payments in your store or online, we suggest taking a look at your yearly total expenses and fees. When Should I Review My Card Terminal Fees? Take some time to review your costs and ensure you're getting the cheapest fees on your card payment device to suit your business needs. One area we suggest looking at is your credit and debit card reader and payment terminal fees. You could be over-spending on services, business tools or products that up to now seemed like totally good investments.īut as you grow your business its always a good idea to take an over-head view of your current investments and ensure everything remains fit for purpose. Let's get down to the crux of it – Additional sales aren’t always the answer to increased cash flow. Perhaps in an article written by a helpful merchant services company that just happened to be right on time… Cash that will make a real difference to your business…īut luckily, every now and then there’s that very rare occasion when the answer just lands square on your lap. So, you’re forced to look a little deeper to find that extra cash. Additional cash flow would help you to take things to the next level…īut to create more sales you may require additional marketing budget, or maybe even brand-new products or services! That’s just not an option right now. You’re doing well but there’s always room for improvement. Having another name besides your business name on statements might also not be the type of branding you want.We’ve talked about it before – One of the most important success factors of any business is funding and cash flow! Perhaps you’ve set in place the perfect plan of action for your business - Sales are good (but more sales are always helpful), and expenses are kept to the absolute essentials. Furthermore, when you don’t have your own merchant account, the processors name may appear with your business name on customer credit card statements. Paypal, Square, and Stripe are examples of these. These types of processors are called payment facilitators, aggregators, or 3rd party processors. Even though the transaction fees are higher, such as 2.9% and $0.20 per transaction, they generally have low monthly fees. For this reason, shared merchant accounts are typically for small businesses that have lower than $50,000 per year in credit card processing. After a transaction, the funds are deposited into the master merchant account rather than your own business bank account.īecause there are so many merchants and transactions on this account, it is much more likely that a hold would be put on your account preventing you from accepting credit cards if there is unusual activity. In this scenario, you are sharing a merchant account with thousands of other businesses. These payment processors are also known as payment aggregators. ![]() Some payment processors offer a shared merchant account. ![]()
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