Credit Card Processing Fees
One of the unique features of StoreLIVE! is its flexibility in allowing you to use whichever credit card provider you prefer. This allows you to choose the provider that works best for your business.
That being said, it’s a good idea to periodically check your credit card fees, as these can significantly impact your bottom line over time. One effective way to monitor these fees is by calculating your effective rate. To determine this:
Divide all credit card processing fees by the total credit card sales. Be sure to include all sales and applicable fees for the same date range (this also includes any compliance or account fees). This simple calculation gives you a clear picture of how much you’re paying relative to your sales.
If you find your fees to be higher than expected, reaching out to your credit card processor to review your account and fees is an excellent first step. Many processors are open to renegotiating rates, helping you potentially reduce costs and save money.
Credit Card Surcharges
Credit card surcharges continue to be a hot topic as well. At Good’s Technology we feel that it is best practice is to pay close attention to your credit card rates to make sure you are getting a reasonable rate and cover credit card fees by maintaining a healthy margin on the products and services that you sell. However, if you choose to implement a surcharge there are several things to keep in mind:
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A surcharge essentially increases your customers’ price. It’s crucial to monitor and manage these charges to ensure they remain reasonable and transparent. Excessive or unexpected surcharges may deter customers, potentially impacting your sales and reputation.
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Not all surcharges are legal. It is also important to make sure any surcharges suggested by your credit card processor are legal. Unfortunately, it is hard to get solid information on what is and is not legal. However here is a link to MasterCard’s FAQ on Merchant Surcharges that can get you started.
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You should pay close attention to your credit card fees even if you plan to charge a surcharge. It is important to make sure any surcharges suggested by your credit card processor are reasonable as many credit card processors will suggest or charge a fee greater than a reasonable credit card processing fee.