This is the Beacon Payments blog. Learn about the credit card processing and the merchant services industry. Hear about the successes of our outside sales people whose job it is to sell merchant services and sell credit card processing programs.
We have been asked this question hundreds of time since Square introduced its flat rate credit card processing system. The answer is: It depends. I know - not what you are looking for - but it really does depend on a few factors: the size of your average transaction and how much you actually process through your merchant account every month.
As of yesterday business owners in most states will be allowed to pass the cost of credit card processing on to Visa and Mastercard users through surcharges of up to 4%. This raises a big question: will merchants actually charge this fee? Customers may be put off when they realize that they are paying more to use their card and may prefer to shop somewhere else. It will be interesting to see how this plays out over the coming months and if the fact that this is now allowed will actually change they way the merchant services industry and retailers run credit card transactions.
We have had many clients ask how they can figure out how much their monthly FANF fee is going to be. In our last post we published a chart breaking down these fees. Calculating your cost is fairly easy if you ONLY swipe cards or ONLY run non swiped cards. (IE: you run all your credit card processing over the phone or internet)...