Minimum Charge for Credit Card Purchase
Many businesses wonder: Is it legal to require a minimum purchase amount for card transactions?
Many businesses wonder: Is it legal to require a minimum purchase amount for card transactions?
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.
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 credit card processing works because fees are incurred at various stages of the system.
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.
Tiered pricing or interchange plus? How do you know what’s best for your business?
Credit card processing fees seem complicated. But take away the sales jargon and it makes more sense.
Interchange plus pricing is a credit card processing pricing structure that separates the components of processing, costs allowing for transparent reporting and interchange optimization.
Accepting credit cards at a business comes with costs. The largest portion of the costs is known as interchange.