Credit Card Transaction Charges

By Alter Sage

Understanding credit card transaction charges will lower your bills and enable you to take advantage of free transactions and interest-free credit.

There are a number of fees and charges associated with using a credit card, and being aware of these will help you to minimise them as much as possible. The good news for consumers is that competition within the financial industry has provided more advantages to cardholders in recent years, including free transactions and reduced banking costs.

Nonetheless, there will always be credit card charges attached to using plastic. These fees are dependent upon the type of credit card you have, its features and benefits, and the particular rates charged by your bank. In this article we’ve unpacked credit card transaction charges and taken a look at free credit card transactions.

Cost of credit card transactions

• Free credit card transactions:
Credit card holders do not pay to swipe their cards – in other words, they pay no point of sale (POS) fees. This expense is carried by the merchant. It’s one of the major differences between using credit cards and using other types of non-cash payment methods, such as debit and cheque cards, for which swiping fees are usually incurred.

• Pay As You Use transaction costs
There are a number of “pay as you use” costs associated with credit card usage. These credit card transaction costs differ from bank to bank, and the specific figures are available on the banks’ websites, or in informational pamphlets available from the branch.

Cardholders will pay credit card transaction fees when, among other things, they:

• Withdraw money at an ATM or branch
• Request balance enquiries at an ATM
• Make branch deposits of cash or cheques into the account
• Incur penalties for payment transgressions, such as dishonoured payments

Credit card holders will also be charged interest on their purchases, unless they enjoy an interest-free credit period, and settle their outstanding balances in full before the interest-free period is over. The interest-free period offered by banks is usually around 55 days. Annual card fees and once-off initiation fees are also applicable to some credit cards.

How can I avoid paying credit card transaction charges?
Credit cards are highly efficient money management tools, and by using them correctly, you can reap significant benefits without incurring excessive transaction fees. Try to use your credit card only for swiping purposes. If you need to withdraw cash from the bank, use a different account. Many cheque accounts, for example, offer a number of free withdrawals per month. Take advantage of these types of benefits.

Moreover, always try to settle your credit card debt within the interest-free period. This way, you’ll enjoy a continuous interest-free credit loop. Being a responsible credit user will ensure that you don’t incur any penalties for dishonoured payments and other such transgressions, which will also help you to avoid unnecessary fees.

Apply for a credit card today

Applying for a credit card is quick and confidential, thanks to online credit card application facilities. Simply follow the steps for submitting your application, and you’ll soon know whether you qualify for a leading South African credit card.

About The Author

Plastiq offers a range of leading South African credit cards that feature interest-free credit and competitive transactions fees. Explore the range of personal credit cards and American Express credit cards, as well as Nedbank Business credit cards.

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Advantages of Mobile Credit Card Processing

By Jack Chevalier

Credit Card Processing Equipment are the essential tools for any business. And to sail through today's competitive market, mobile credit card processing equipment is a necessity for your business. With these equipments. You can take your business to the customers and can process a transaction quickly and easily from anywhere in the world.

Mobile credit card processing equipment ensures fast payments and increases total sales. It also helps in boosting your business credibility. With smooth and simple operation, transactions are conducted automatically and in real time. And once getting the authorization, a printed receipt is given to the customer.

These equipment helps in accepting payments through both online credit cards and telephones. It also provides a secure payment gateway that enables fraud screening. The users are just required a virtual terminal for the online transactions. It enables you to get all the services through the Internet.
Mobile credit card processing equipment further include benefits like; low monthly charges, low processing fees and no monthly minimum processing charge. Today, the wireless mobile credit card processing equipment is the latest in terms of offering convenience and portability.

Paynet Systems introduce credit card processing into your business, and make things convenient for your potential customers. With our facilities and equipments, you are saved from sending money checks, placing checks by phone, or sending money orders to purchase any product. We assure our users of smooth execution of transactions after a complete verification process.

Browse through http://www.paynetsystems.com to get more information about Credit Card Processing and How to Accept Credit Cards.

About The Author

Paynet Systems is a leader in credit card processing and merchant accounts services. For more information on credit card processing and credit card machines visit http://www.paynetsystems.com

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How to Secure Your Online Processing Web Site

By 10x Marketing

It’s so easy making purchases online and just waiting until they arrive in the mail. However, with this rise in web business and online credit card processing, people need to be even more diligent in protecting their identity. Make sure you are playing it smart when it comes to using internet transactions to make your life easier.

Credit cards are the most common way people pay for things online. While some options also include paypal, direct from your checking account or e-check, most people tend to rely on credit cards. You should not be afraid to shop online or store your information online. However, you can easily make yourself smarter regarding some of the scams out there and also how to make sure you are shopping from a secure source.

1. Keep your internet browser updated. Browsers have security software capabilities and you need to keep this information up to date. Make sure you are using the latest encryption technology.

2. You can look for digital certificates to validate the identity of the site you visit. Look for the VeriSign logo on the site or other such independent services, which will assure you that the site is legitimate.

3. Read the privacy policy. Make sure that your personal information isn’t being sold or passed around.

4. Use one credit for online purchases rather than several.

5. Every once in awhile you may receive those scam e-mails asking you to verify your personal information, passwords or credit card numbers. Don’t fall for these e-mails. Never give out this kind of information unless you know exactly who is requesting it.

6. Keep receipts and keep track of your credit card statements.

7. You will almost always get an online receipt when you purchase. Make sure you receive one.

8. Keep an eye on the domain. Make sure you are not transferred to an outside site trying to steal your information.

More and more people are using the internet to save costs during this troubled economy. From online subscription services allowing you to get household items at monthly increments to buying gifts for the whole family, there is a reason for everyone to flock to the web. It is a great way to comparison shop. Online banking too is becoming more commonplace. The days of check writing are in the past and the days of bill pay, credit and debit cards are here to stay. In fact, even a lot of media is now online allowing users to purchase downloadable television shows, movie and music. We have not seen the end of the wonders and possibilities available with the internet.

Act smart when you purchase things online, pay your bills or handle other banking matters. You don’t have to shy away from the internet as more and more things are becoming easier to handle online.

However, you should stay smart. Protect yourself so those scam artists don’t steal your identity. If you do become afraid that you are a victim of identity theft check your credit report online. Stay on top of your information so that you can make sure it is accurate. If you take some simple steps to keep your information safe you will be able to shop online with peace of mind.

About The Author

Jason Ausmus is a web content producer for Innuity. For more information regarding credit card processing or web business go to Merchant Partners

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The Benefits of Point of Sale Systems Are Becoming More Apparent

By Amy Nutt

The early days of using a cash register and pen and notebook for accounting and processing transactions are no longer an effective means of keeping up with today's advancements in business technology. In order to stay competitive businesses have to adapt and change with emerging technologies. A technological advancement that businesses are now using is the point-of-sale (POS) system. They are now realizing the many benefits POS have on their businesses.

The following are the many benefits of utilizing point of sale systems:

1. POS systems provide a business with a real-time detailed report of sales. This allows businesses to assess what products are being sold and what products are lagging in sales. The business can then implement marketing strategies to boost sales of the popular products. They will also know in real-time what is not selling so they can decide whether or not to order that product. A POS system provides the latest sales reports for the day, week, month, or year.

2. POS allows for improved customer service. Transactions are processed much quicker, item that are scanned for their price are accurate which lessens sales discrepancies.
There is also a wide selection of methods to take payments such as credit cards, debit cards, gift cards...etc.

3. POS provides an efficient method of managing inventory. By being able to view in real time what is selling, they will be able to reorder products that are running low. POS software will also let you know when you need to reorder a product. Businesses can also keep track of the time of day that certain products are selling so they can arrange marketing displays around peak selling times. As well, businesses will spend less time on paperwork, accounting, inventory management, sales record keeping, as well as managing such programs as marketing, special advertising programs, loyalty programs, discount programs, and much more.

4. POS allows for the management of gift cards, coupons, and loyalty programs. This is effective way of monitoring the program and keeping track of the success of the programs.

5. POS systems and software is easy to learn. Most POS sellers will train staff and management on how to use the system. It is also easy to install and maintain. As well, POS software can be integrated into other applications so that all areas of business management can be viewed in one central place. It gives the user better control of the business. As well, technical support is only a phone call away.

6. POS retail software makes it easier to keep track of customer personal information, staff payroll, customer billing and shipping, vendor listings, and inventory management.

The many benefits of point of sale systems make it an essential business investment. The type of retail software a small business chooses depends on the type of business, size of the business, amount of sales, and the type and amount of inventory.

Point of sale systems allow for better management of a business, improve customer satisfaction, and helps increase sales. With POS, businesses are able to run a more effective and efficient operation.

About The Author

Not only are payment gateway services allowing consumers to experience a better shopping experience, but some of the offered merchant services also allow businesses to better manage their merchant account. As retailers accept credit card, hassle of using cash is eliminated.

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Overcoming Credit Card Purchase Minimums

By Ben Dwyer

The Merchant's Standpoint:

It's an all too common headache for customers: They attempt to pay for a small purchase with a credit card, only to be informed that cards are only accepted for amounts over a certain minimum.

Merchants who impose minimums aren't purposely causing customers headaches, however, and there's an understandable reason for these purchase restrictions: the merchant can actually lose money on smaller purchases when the processing fees are larger than their profit on the sale. While a minimum purchase price is perfectly logical from a merchant's standpoint, it's specifically prohibited by three of the four major card brands.

The Credit Card Company's Standpoint:

MasterCard states clearly that merchants may not impose (or even say that they require) a minimum or maximum on purchases: "A Merchant must not require, or indicate that it requires, a minimum or maximum Transaction amount to accept a valid and properly presented Card."1

Visa's stance is similar, but with two small differences. Firstly, rather than simply forbid minimum or maximum purchases, they expressly instruct merchants to always honor valid cards, a subtle distinction but a distinction nonetheless. Furthermore, they go an extra step in explicitly stating that failing to do so is a violation of their rules: "Always honor valid cards in your acceptance category, regardless of the dollar amount of the purchase. Imposing maximum or minimum dollar amounts in order to accept a Visa card transaction is a violation of the Visa rules."2

Discover's statement is slightly more confusing: "You may not require that any Cardholder make a minimum dollar purchase in order to use a Card and you may not limit the maximum amount that a Cardholder may spend when using a Card except when the Issuer has not provided a positive Authorization Response for a Card Transaction."3

American Express doesn't specifically address the issue in their guidelines, but they have publically discouraged any practices that may discourage customers from using their cards.

So, here we're presented with the other side of the coin. When merchants place a minimum on card purchases, they're protecting their own business from losses. However, each transaction they refuse is one less purchase that benefits the credit card companies. Obviously, the credit card companies want their customers using their cards as often as possible, whether or not the merchants lose money on processing fees.

The Bottom Line:

So, it may seem that merchants are faced with two options: On one hand, they can comply with the credit card companies and lose money on small transactions. On the other, they can ignore the rules put forth by credit card originators and require a minimum amount regardless. Neither is ideal, especially as violating the rules set by credit card companies can have dire consequences. All it takes is one phone call to the credit card company from an upset customer, and merchants may lose their ability to accept credit cards or face fines reaching into the thousands of dollars.
Additionally, their bank may place the merchant on what's called a Terminated Merchant File (TMF), which will keep them from getting a competitive merchant account with in the future. Losing the ability to accept credit cards is a huge blow to business, and for e-businesses or retailers it is essentially a death sentence.

Luckily for merchants, they can avoid both losing money and violating the rules through a little resourceful pricing.

The first is to simply raise prices on everything to offset your losses. Higher prices will side-step your processing fee problem, but they may also make you less competitive. Market research is required to determine the price increases you can reasonably make.

The second option is to pass your processing fees to the customer. Charging customers extra fees for paying with a credit card is, unsurprisingly, forbidden by credit card companies. However, you can offer them a discount for paying with cash or check so long as the cash price is clearly shown as a discount from the standard price.

This will encourage customers to pay with cash across the board (for both smaller and larger purchases) while keeping your prices competitive. A menu item at a coffee shop might then look like this:

Grande Iced Mocha
Price: $5.00
Cash Discount : $0.50

Notice that there aren't two different prices. Instead, a cash discount is clearly stated and credit card transactions aren't singled out as directly costing more. The discount gives the customer an incentive to pay with cash instead of credit for small items while simultaneously protecting you from losses.

Sources:

1 "MasterCard Rules", p. 125, "Minimum/Maximum Transaction Amount Prohibited"
2 "Card Acceptance and Chargeback Management Guidelines for VISA Merchants". Section: "VISA Rules", "Dollar Minimums and Maximums"
3 "Discover Operating Manual", p. 26, "Maximum/Minimum Dollar Amounts and Other Limits"

About The Author

MerchantCouncil helps business get a cheap merchant account by offering the best merchant account information.

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Merchant Cash Advance Provide Capital To Expand

By Daniel Marcus Manson

My brother and I quit our jobs a few years ago to start our own home renovation business. We know all too well why they say timing is everything, because just when we were gaining traction, our business was walloped by the recession. People who are losing their jobs don’t have the cash to be putting on that addition, replace their windows or build a new deck.

So what did we do? While the layoffs devastated the real estate market, other renovation companies went under and banks quit lending out money to small businesses, so we couldn’t get a loan to carry us through the tough times. We used a Merchant Cash Advance to raise additional capital and expanded. Besides the fact that we could actually qualify for funds using this method, once we had it, there was no bank account manager breathing down our necks and demanding a say on how we spent it.

In case you don’t release how financing of this nature works, it’s a form of credit card advance. Since our customers frequently pay by Visa or MasterCard and our credit card sales (even during the worst of the slowdown) easily exceeded $2,500 per month, we were able to work with an alternate lender to secure a cash advance based on future credit card transactions. Our repayment is based on a percentage of future credit card sales, so if we did see further slowdowns in bookings, our repayment would have a corresponding dip; as opposed to a traditional loan that keeps its fixed payment amount, regardless of circumstances. We used Rapid Capital Funding, since they specialize in this sort of financing, but there are other lenders in this area. Turnaround was fast, we didn’t have to spend the better part of a day filling out forms, there were no closing fees and even better, we did not have to put up personal collateral to secure a Merchant Cash Advance.

So while our competitors went under, we had the cash available to react to the circumstances and we actually expanded, keeping our reno business, but using the funds from the credit card advance to purchase additional equipment and hire staff for a new division that works with banks to provide maintenance on foreclosed homes. It’s kind of ironic when you think about it; the banks didn’t have the time of day for us when we applied for a business loan, but if we hadn’t raised the capital to expand by way of a Merchant Cash Advance, their foreclosed real estate assets would be depreciating further in value.

About The Author

Ken Walls owns a successful small business that he expanded by using a Merchant Cash Advance. The additional funds, which traditional banks had no interest in loaning him, provided the capital to take advantage of conditions and expand his business at a time when many competitors who weren’t aware of credit card advance options missed their inflexible loan payments and went under.

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Merchant Account Interchange Pricing: What it Is, And What it Can Do For Your Business

By Ben Dwyer

Traditionally, the most popular pricing structure for merchant accounts has been a tiered rate model. Under the common three-tiered system, merchant accounts have a base rate (referred to as a "qualified rate") and two subsequent tiers that determine a surcharge that is added to the base rate. These tiers are often labeled Qualified, Mid-Qualified, and Non-Qualified. Transactions charged at the Qualified rate will incur the lowest fees, while a Non-Qualified transaction will be subject to the highest surcharges.

This is not true of the largest, high-volume companies. Larger companies have long had access to accounts with interchange pricing models. Interchange fees are essentially the wholesale rates for various types of credit transactions. There are countless factors that determine the interchange fee for a given credit card transaction, and it's not important for the purposes of this article to understand them all. What is important is this: interchange pass-through pricing allows the merchant account provider to pass on the interchange fee to the merchant plus a flat surcharge, resulting in substantially cheaper rates for the merchant overall.

Since the profit margin on interchange merchant accounts are tighter, this pricing structure has previously been available only to very high-volume merchants, but recently there has been a trend towards making interchange pricing available for low-volume or even brand new merchants.

Reasons for the Mainstream Availability of Interchange Pricing

Increasing market competition and a tense economic playing field have been contributing factors to the increased availability of interchange pricing. Merchants also have access to a wider and better array of information online than ever before. The more merchants educate themselves, the less likely they are to agree to the more expensive tiered pricing structures. To keep their market edge, many merchant account providers have been forced to make pass-through pricing available to more merchants.

The Effects of Interchange Pass-through Pricing on Your Business

Interchange has always been the core factor in determining a merchant's processing fees, but the simplified three-tier structure has been built on top of this. Visa and MasterCard release interchange fee schedules twice yearly in April and October, listing hundreds of different qualification tiers. These are substantially more intimidating to understand than a simpler tiered model, but merchants who obtain pass-through pricing (especially those who take the time to understand it) stand to make considerable savings.

The exact savings a merchant can expect to see will depend on a variety of factors. The type of business and the specifics of their tiered pricing structure will strongly affect their savings. However, according to CardFellow.com, a comparison shopping site for merchant accounts, average savings are often around 20%, with some merchants reducing their expenses by over 40%.

Interchange Pass-through Pricing in the Days Ahead

For merchants, the switch to a more complicated (and currently less common) interchange pricing scheme might be daunting at first, but those who put in the effort are consistently rewarded with significantly lower processing expenses.

For account providers, it all boils down to competition. They've become accustomed to large margins, and they will surely be hesitant to let go of that extra revenue. Regardless, no business can ignore the changing tides of a free market, and as interchange pass-through pricing becomes more mainstream we'll only see an increase in the number of providers who begin to offer it.

About The Author

Information to help businesses get the best merchant account such as merchant account reviews and tips on getting a cheap merchant account is available at MerchantCouncil.

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