When you choose to accept credit cards, you can enjoy a huge boost in traffic and sales. Many customers prefer to pay with their card, so you won’t have to turn away anyone without cash. Unfortunately, many merchant solutions require monthly fees and other hidden costs to accept cards. Explore the pros and cons of monthly fee accounts and find out how you can avoid paying fees as you grow your business.
Dangers of Monthly Fees
Whether you’re earning money or not, a monthly fee is always there. Unlike per-transaction rates, a monthly fee typically doesn’t take your sales or season into account. This can be a costly investment for small businesses with inconsistent sales or seasonal schedules.
One benefit of monthly fee accounts is that they sometimes offer lower per-transaction rates. If the rate is considerably lower than the rate of a no monthly fee account, it may be a worthwhile option for growing businesses. For startups and other businesses that are just launching, a fee-free credit card processor is typically the best option.
Watch for Hidden Fees
Review processing options carefully before signing on. Many companies advertise no monthly fee, but have many other hidden fees attached to the account. Processors can add fees for these and other services:
- Customer service
- Deposit turnaround
Ask about all of these areas and find out if there are any additional fees. Sometimes these fees give you access to better equipment or lower transaction rates, but they may be too high for a business just starting out.
Understand Per-Transaction Rates
All credit card processing systems have a per-transaction cost. This percentage covers the cost of using the processing system. Expect to pay around 2% per transaction for credit cards. There are, of course, many factors that affect this rate.
Some credit card companies charge a higher rate than others. As a small business, it may be difficult to reach this rate due to the low volume of transactions you process. Many processors offer a low rate per transaction but charge a monthly fee to account for the difference.
Compare per-transaction rates of fee-free and monthly fee options. If you don’t have a large volume of sales, consider choosing a fee-free account to save money on your monthly expenses.
Credit card processing works for nearly any industry. Whether you’re looking for a restaurant, coffee shop, salon or automotive POS, enjoy the same competitive rates and little or no monthly fees. Choose dynamic equipment that is compatible with your industry and gives you the cutting edge you need to succeed in a crowded market.
Find a Credit Card Processing Solution Today
Explore your options and discover the advantages of credit card processing for business no monthly fee. Find out more about affordable credit card processing options that grow with your business and give you a safe, efficient way to accept credit cards. Don’t turn away customers or reduce your sales by only accepting cash, but keep your small business at the forefront of card processing technology and avoid paying additional fees.