Saturday, 3 December 2011

What Are The Common Fees Involved In Credit Card Processing And Merchant Account Service?

Expenses in credit cards processing are inevitable and vital for the efficient and consistent maintenance of the service provider's operations. With the increasing number of service providers nowadays, credit card processing fees have also varied, with some offering the most outrageous prices for services you can get for half the price. The best way to find the right card merchant processor who can give you all the services you need for a price you can afford is to understand all the fees involved first and if they're necessary and reasonable.

One of the most common fees involved in card processing and merchant accounts is the transaction fee. Most card processors require various types of debit and credit card fees that cover the fundamental expenses of processing a transaction and these apply even though the sale is later on disproved. Usually, this fee is reduced for swiped card transactions as compared to CNP transactions which have a greater risk for fraud. A PIN debit fee is often charged when a personal identification number is entered by the costumer into the PIN pad.

Another set of fees usually required by card processing service providers is the address verification service (AVS) and support service fees. The cardholder is charged with the AVS fee as an additional service cost of confirming that the entered address in a CNP transaction and the one kept on file by the issuer of the card are one and the same. This method lowers the risk of fraud and ensures security for both the business and card issuer. The support service fee, usually charged on a monthly basis covers the overhead expense of customer support options and is usually fixed without taking into consideration the number of transactions successfully processed.

The monthly statement fee covers the cost of the monthly statement issued by the credit card processor which catalogs all your transactions. There may also be chargeback/retrieval fees to be collected when the card issuer charges the amount paid for a purchase back to the merchant after a cardholder or the issuing bank negates the charge. The account holder must then pay for the overhead expense of having the processor settle the dispute.

To help you decide whether to invest in a good credit processor or not, add credit card processing amongst the essential expenses of your business or establishment along with utilities, materials and staff payroll. Just as staff works or employees and electricity are necessary for the smooth operations of your business, acceptance of cards is a must-have if you plan to compete in a highly-technological market. With the right service provider such as, your credit card processing expenses need not create a hole in your pocket.

Kashif Wild Bernard is the marketing manager of a service merchant credit card process company within the financial services payment industry. They mainly deals in Credit Card Merchant Processor and Credit Card Swiper you can find more products and services at his website

View the original article here

No comments:

Post a Comment