For most business owners and CFOs, the mere thought of budget season leads to a headache. And rightfully so, since it’s typically summed up in two words: tedious and cumbersome.
Reviewing the payment processing portion of your budget, however, can make you feel like you got a big raise because better rates are possible – and better rates yield big savings.
Here’s a Breakdown of Your Payment Processing Fees:
Each credit card transaction is made up of three key components:
- Interchange rate (60-70% of total fees)
- Dues and assessments (5-10% of total fees)
- Processor fee (20-30% of total fees)
Interchange Is the Key to Influencing Your Fees
What merchants don’t realize is that interchange – a.k.a. the largest portion of your credit card processing costs – can be influenced.
Several factors determine what interchange rate a transaction qualifies for, including:
- Card type
- Processing environment
- Industry type
- Transaction amount
- Additional processing data
- Line item details
“Credit card processing fees are typically hidden or overlooked, and the cost you pay for merchant services directly affects your bottom line,” Eric Fette, director of sales, points out.
For example, most merchants don’t realize they can earn Level 3 savings on B2B transactions by collecting line item details – so they don’t ask their processor how to qualify. And it’s not something every processor brings up.
Infintech Can Ease Budgeting Woes
“Our payment processing advisors use a consultative approach to bring optimal savings to each of our merchants,” Fette continues. “It’s one reason we rank at the top of our industry for highest customer retention.”
Want to Start Influencing Your Payment Processing Fees?
Contact us online or call 1-800-621-8931.