Despite credit cards ranking among the most widely preferred payment methods, many SMBs still do not accept card transactions. Startups avoid POS systems because they don’t think they can afford the rates. However, processing fees are more affordable than most think. Calculate the impact of the processing fees on your profit margins to arrive at accurate profit projections.
Processing payments costs more online than in-store. Most well-known payment processors charge 2.9% + $0.30 to process card transactions online — around 0.3% higher than in-person card payments. For lower rates, try bank transfers and ACH payments. Although processing these transactions takes longer, their fees average at 1% and cap at $5 or $10.
Are you in the market for high-risk processors that charge competitive fees? Processing Card has you covered! Use our quick primer on the cheapest high-risk merchant service providers as a starting point.
The most well-known, reputable payment processors charge the following rates when processing online card transactions:
Most providers charge varying fees to process online transactions, so explore which payment plans match your needs best. Don’t limit yourself to just one or two processors. Calculate how the different rates affect your overall profit margins and if the extra sales cover the fees. Otherwise, consider other providers.
Do you find yourself lost on how to start shopping for a payment processor? Processing Card can help! Check our brief, helpful guide on efficiently comparing different payment processing fees.
Florence Carpenter is passionate about ensuring that the process of opening merchant accounts is as straightforward as possible. She graduated from the University of Michigan with a bachelor’s degree in Marketing.
