Credit Card Processing

Credit Card Processing – Everything You Need To Know


Throughout the years, businesses all around the world have gone digital. By taking your business online, it is possible to expand your customer base and potentially increase the amount of profits generated. Of course, in order to fully capitalize on this endeavor, you need to familiarize with credit card processing, so you can accept card payments online. Within this guide, you will learn all about processing and accepting credit card payments over the Internet.


How It Works


Whether you’re interested in accepting credit card payments online or in your storefront, you should learn how the process works. Generally, most businesses will team up with a processor, who will handle the process for them. The majority of these entities will charge the business a minute fee for each individual transaction, but the fees can be very diverse from one processor to another. You should also know that the fee could vary depending on the type of transaction in question. For instance, online processing may be slightly more costly than in-store processing and vice versa.


What To Look For


When attempting to find a reliable credit card processing solution, you will need to analyze a handful of factors, in order to ensure you get the best rate possible. First and foremost, you should analyze the percentage per transaction. This could cost anywhere from 1 to 2% per card swipe. Some processors will also charge a minor fee per each transaction, with the average ranging between ten to twenty-five cents. Although the fees are minimal, they can become very substantial, with repeated transactions.


Other Potential Fees


Aside from the transactional fees, some processors will also tack on many other additional fees. Below, you will find a list of other fees, which may be applicable to you.


  • Cancellation or termination fees
  • An annual fee
  • Charges for batch transactions
  • Reporting fees
  • Authorization fees
  • Statement fees
  • Application charges
  • Chargeback fees


These fees may or may not be present. Paying an annual fee will oftentimes help to lower the individual transaction fee, so you should not immediately rule out processors, which charge each year or month. With this in mind, it is absolutely vital to shop around and examine all of your options, before finally settling for a credit card processor.




There is truly an abundance of processors out there and their fees will vary substantially. Do not rush this decision, as it can be very impactful on the amount of income you receive from each transaction. Make sure you take your time and analyze each and ever fee charged by all processors. After a bit of research, you will find a good, reliable processor, which offers the lowest and most favorable costs.

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