Is It Normal to be Charged Almost 5% to Accept a Credit Card?

Small business owners and eCommerce webmasters who are planning to accept credit cards should be very familiar with how much banks charge per transaction and why they charge that amount.

Once you have opened up an online store or a new physical retail location, you will likely need to open up a merchant account in order to process credit card transactions. Once you do so, banks will charge a per transaction percentage along with a flat rate fee per transaction. For merchant accounts, banks and financial institutions will normally charge between 2.5 percent and 5.5 percent of your total monthly credit card sales. This number may be more or less depending on what type of business you run, whether or not your business is based online and the total amount of transactions you process.

Online Businesses and Merchant Accounts

Because online businesses come with an increased chance of customers committing fraud, banks will likely charge a higher percentage for newly opened eCommerce stores. Each transaction will come with both a flat fee and a percentage that will be deducted before the net amount is deposited into your bank account. Often times, banks will wait until the end of the month to release any funds that your business has made.

Certain online businesses such as adult websites, payday loan websites and dating websites will have a harder time being approved for a merchant account. They may have to provide more documentation and will be charged a higher percentage for the transactions they process.

Credit Card Processing: How Much Should You Be Charged?

When it comes to credit card processing and what is a fair amount that one should be charged, there is not one right answer. Some of the determining factors include:

  • The type of business you own.
  • The amount of transactions that are processed on a monthly basis
  • Your credit history
  • The financial institution you choose to do business with
  • Whether or not you’re charged a monthly fee or per transaction.
Most financial institutions will give discounts to businesses who process a large amount of transactions per month or high value transactions. Businesses who process a minimal amount of transactions will be charged a higher percentage. For newly-opened eCommerce stores and for business owners with poor credit histories, it is normal to experience 5 percent transaction rates. This number can be decreased by improving your credit score and maintaining a low charge back rate.

GET FREE QUOTE TODAY AND START SAVING


Testimonials

It took me a while to decide who I wanted to settle with to handle all of my credit card transactions because every company wants to make it sound like they're offering you the best rates. CreditCardProcessing.com was able compare and beat all of the other offers I received. They were also able to provide me the fairest price on my EMV-compliant terminal. My sales representative and the support team were there to assist every step of the way. Ultimately, I'm looking forward to a long term relationship with this company.

Roland Tran from the Hong Kong Kitchen

It is a pleasure dealing with these folks. Their pricing is fair, their statements are understandable and their employees are knowledgeable and friendly.

John MacMillian from the Great Lakes Baking Company

The service was very professional, my sales person (Steven B.) was very well versed in the product and most helpful in getting our company set up to accept credit cards via my cell phone. Their rates are some of the lowest on the market and their service is unparalleled. I will recommend them to anyone requiring a credit card processing service.

Michael Harper from Deluxe Auto Body

Jonathan C. is wonderful to work with. He is very helpful, accommodating and resolves any issue quickly. It is hard these days to find someone who gives great customer service, but I can say, Jonathan is the best! I would not hesitate to recommend him to any business owner and to assist you in helping to grow your business.

Linda Garner from Regali Da Forno

I called indecisive about getting a device, but speaking to your Sales Consultant completely settled me. He was very professional, knowledgeable and patiently walked me through the process. He always responded to my voicemails and answered all my questions. After I received my merchandise, he called following up to ensure that I had received it. Customer service I would say is 5 stars. Stellar! Thanks Credit Card Processing, I will definitely recommend you.

Sarah Morgan from Vision International Ministries
Call Us Today! (866) 837-0751

© 2016 CreditCardProcessing.com. All rights reserved. Privacy Policy
CREDITCARDPROCESSING.COM, LLC is a registered ISO of Wells Fargo Bank, N.A. Walnut Creek, CA

*Further terms and conditions may apply. Promotion contingent upon CreditCardProcessing.com's receipt of written competing offer(s).

**Certain restrictions may apply.

Promotional offers brought to you by CreditCardProcessing.com.

Call (866) 837-0751 for details.