Category Archives: Credit Card Processing Info

Update: Visa has scrapped what is was calling the Network Participation Fee in place of the Fixed Acquirer Network Fee due to become effective on April 1, 2012. Update: Visa has confirmed that the Network Participation Fee will take effect … Continue reading →

Section 6050w of the IRS tax code enacted by the Housing Assistance Tax Act of 2008 took effect on January 1, 2011 and requires payment processors to report merchant income to improve tax compliance by businesses that accept credit cards.

Processors must report all settled payment card transactions under section 6050w. And they must perform backup withholding at a rate of 28% beginning in 2012 for merchants that have incorrect

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We’re always talking about how to lower credit card processing fees. So, this post keeps things interesting by taking a break from the norm to discuss five sure-fire ways to get ripped off by a willing credit card processor… Continue reading →

Yes. It is now acceptable for you to set a minimum charge on credit card purchases so long as you abide by the following stipulations as set forth in your processing agreement with Visa, MasterCard and Discover.

American Express is (and always has been) largely silent on the issue of minimums. However, it’s generally regarded as acceptable to apply the terms set forth by Visa, MasterCard and Discover to American Express.

Here are the finer details regarding minimum charge restrictions on credit card purchases… Continue reading →

The Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted in response to the late-2000s recession, contains the most comprehensive set of changes to financial regulation in the United States since the Great Depression. Within that, a relatively small portion of the act – the “Durbin Amendment” – has made decisive and controversial changes in the way debit cards are processed. These changes are meant to lower the financial burden… Continue reading →

It isn’t necessary to have intimate knowledge of the inner-workings of the bankcard system in order to find the best credit card processor. But, it’s a good idea to have a general understanding of how things work because fees are incurred at various stages of the system. Knowing the lay of the land will help you to isolate areas of possible savings. Once you’re done reading this article, check out our more detailed breakdown of where credit card processing fees come from… Continue reading →

If your business charges credit cards, you pay fees. This seems straightforward enough on its surface — you might assume it’s as uncomplicated as Visa or MasterCard taking a cut of your sales. It’s not really as simple as all that, though. In actuality, a variety of entities are working behind the scenes, and it’s the card-issuing bank that ends up taking the largest piece of the pie. The more… Continue reading →

Understanding how credit card processing fees are determined and how different merchant account pricing models work can save your business hundreds of dollars a month in transaction costs.

Understanding what goes into determining fees

Probably the biggest reason that merchant account pricing schemes can be so complicated for the business owner is that the mechanics going on behind the scenes are… Continue reading →

Rest assured. Cardit card processing fees aren’t as confusing as you might think. In fact, fees are pretty straight forward once the components are examined individually. In this article we’ll explain the different aspects that contribute to credit card processing costs to give you a solid understanding of who’s charging what and which areas of cost you can control.

Each quote that you receive here at CardFellow comes complete… Continue reading →

Interchange plus is a form of merchant account pricing that separates the components of processing costs allowing for transparent reporting and interchange optimization often leading to lower costs when compared with other forms of pricing such as tiered or bundled.

Interchange plus is the only form of pricing that processors are allowed to quote here at CardFellow.

• What is interchange plus?
• How does the

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Interchange fees account for the majority of credit card processing expense, and a familiarity with interchange is vital knowledge for any business owner or manager. You’ll find a link to the current interchange fees in each merchant account quote that you receive here at CardFellow, and also in the text below.

Interchange is the money transferred from the acquiring bank to the… Continue reading →

The effective rate is the most accurate single measure of the cost-effectiveness of a merchant account. The effective rate is expressed as a percentage and is calculated by dividing processing fees by sales volume. The credit card processing cost calculator here at CardFellow will automatically calculate the effective rate of each quote that you receive to help you choose the best credit card processor.

For businesses that already accept… Continue reading →

• Unaffiliated Credit Card Processing Consultant
• Affiliated Credit Card Processing Consultant
• CardFellow: The Best of Both Worlds

A logical step toward finding the best credit card processor is to seek assistance from a credit card processing consultant. It’s a great idea, but once the details and costs of obtaining a consultant become evident, it loses some of its luster. Add to that the… Continue reading →

Flat rate merchant account pricing is an inexpensive, transparent credit card processing pricing model. Our processing partners often offer flat rate quotes here at CardFellow. Sign up for a free account if you’re interested in receiving flat rate quotes to find the best credit card processor.

• What is flat rate merchant account pricing?
• How does the flat rate model work?
• What are the

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