Credit card processing fees are a cost of doing business that is unavoidable to companies that accept credit cards as a form of payment. Whether they're buying goods or services, consumers, businesses and government agencies often prefer paying with a credit card. And as a result, credit card purchases may range from  50% to 100% of a company's sales and the associated fees can be thousands of dollars per year.

Most merchants understand that each credit or debit card sale comes with an associated fee. These fees can vary substantially depending on volume, pricing models, and other factors including choice of processor. 

The credit card processing industry is complex, with several parties making money on each transaction your business processes. On a very simplified level, you pay a few sets of fees:

• An Interchange fee, which is the fee the credit card companies charge for each transaction. This fee is set by the credit card networks and split between the networks and the credit card issuing banks. It consists of a percentage of the transaction plus a per-transaction fee. The exact percentage of the transaction varies according to a wide range of specific criteria such as what type of credit card it is, what is being purchased, who issued the card, and many other factors.
• An additional fee charged by your merchant service provider, which includes network usage fees and other non-card brand related fees.

Unfortunately, many small and midsized merchants are rarely told about the interchange rate which represents the wholesale cost of accepting a transaction.   Merchants are also not informed of the fact that for the most part, the "cost" of a transaction varies by only a few pennies depending on the provider, assuming the provider is a registered Independent Sales Organization or Processor.   What drives up processing costs are the intentionally vague pricing models offered by many in the electronic payments indusrty, and the bundling of the nearly 150 interchange categories in to a few categories called "qualified, partially qualified, and non qualified".  

National Merchant Alliance is different.  Depending on your business type and volume, NMA will determine the best pricing strategy for your business and explain the rates and the cost until you are satisfied.

For more information, CONTACT US today.