Is it Time to Switch Credit Processors? Understanding the Impact of Increased Fees
Aug 7, 2024
2 min read
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General Trends
The credit card processing industry has seen a general trend of increasing fees. This is partly due to the rising costs associated with maintaining and securing payment networks, as well as the ongoing adjustments in interchange and assessment fees:
Interchange and Assessment Fees: These fees are adjusted periodically, typically in April and October, and have been on an upward trend. For example, interchange fees for online transactions are often higher due to increased fraud risk.
Processor Markup Fees: Payment processors add their own markup to the fees charged by the card networks. These markups can vary significantly and include various charges such as monthly service fees, per-transaction fees, and equipment lease fees.
Impact on Merchants
The increase in credit card processing fees has a direct impact on merchants, who often have to absorb these costs or pass them on to consumers in the form of higher prices. The lack of transparency and the complexity of fee structures make it challenging for merchants to manage these costs effectively. In conclusion, Visa, Mastercard, and Square are notable for their high and increasing fees in 2024. Merchants should stay informed about these changes and consider exploring alternative payment solutions to mitigate the impact of rising fees.
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Chase
Tap, Dip, or Swipe Transactions: 2.6% + $0.10
Manually Keyed Transactions or Payment Links: 3.5% + $0.10
E-commerce Transactions: 2.9% + $0.25
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Heartland
Non-EMV Assessment Fee: 0.65% for card-present transactions
PCI Non-Compliance Fee: $125/month
Various Other Fees: Card network fees, assessment rates, switch fees, activity fees, and settlement funding fees.
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Spot On
Quick Start Plan: 2.89% + $0.25 per transaction
Counter-Service Plan: $99/month + $3 per additional POS device
Preferred Payment Processing Rate: 1.99% + $0.20 per swiped transaction, 2.99% + $0.20 per keyed-in transaction.
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Toast
Card-present Transactions: Based on interchange and network fees.
Card-not-present Transactions: Higher fees due to increased risk.
Why Pay High Fees? Switch to a cash discount program and keep more profits in your pocket!
Why Choose Cash Discount?
Save Money: Lower your processing fees by encouraging cash payments.
Transparency: No hidden fees, just straightforward savings.
Boost Profits: Keep more of your revenue and reinvest in your business.
Join the Trend!
Switch to a cash discount program today and start saving big. Don't let high processing fees eat into your profits. Make the smart move and keep more of what you earn.