CardFellow Credit Card Processing Blog

Credit Card Processing

Average Credit Card Processing Fees

by Ben Dwyer

What your business pays in processing fees depends on a number of factors, including the type of card, how you accept cards, if you take PIN or signature debit, and more. It also depends on whether you use CardFellow’s marketplace to allow processors to compete for your business. Those that use CardFellow will pay about…

We get this question a lot here at CardFellow: “What’s the average credit card processing fee for a [insert your business type here] business?” There are easy answers to this question, and then there are the right answers.

Read the full article

Credit Card Processing

Daily Vs. Monthly Discount Cost

by Ben Dwyer

Let’s look at the differences between daily and monthly discount. Difference Between Daily and Monthly Discount Monthly Discount Easier to Reconcile, Better Cash Flow Daily Discount Harder to Reconcile, Hurts Cash Flow Disguises Total Cost of Processing How to Tell Which Discount Method You Have Difference Between Daily and Monthly Discount The names give it…

Daily and monthly discount refer to when a credit card processor deducts fees from your business checking account. There’s a big difference between the two, so give careful thought to which method is best for your business.

Read the full article

Credit Card Processing

Interchange Pass Through Pricing

by Ben Dwyer

The benefits of interchange pass through (often called interchange plus) are transparency and lower costs when compared to bundled or tiered pricing models. It’s safe to say that pass through pricing allows your business to get the best credit card processing fees, which is why it’s the only form of pricing we allow processors to…

Interchange pass through pricing is a form of credit card processing pricing that allows the actual cost of processing (interchange fees & assessments) to be passed directly to your business.

Read the full article

Credit Card Processing

Don’t Lease a Credit Card Machine!

by Ben Dwyer

It’s that simple. The article below will provide plenty of reasons why you shouldn’t lease a credit card machine, and this settlement involving a large leasing company is further proof. Credit Card Machine Leases are Nonsense! Benefits of a Lease (According to Processors that Lease Equipment) “It’s Not the Agent, It’s the Processor” Getting Out…

Credit card terminal leases benefit processors not you.

Read the full article

Credit Card Processing

Visa Network Participation Fee

by Ben Dwyer

We’re leaving this article here for historical reference, but will not be updating it. Instead, new information about the Fixed Acquirer Network Fee (FANF) can be found at the post linked above. Visa has announced a new Network Participation Fee and pricing structure in response to the Durbin Amendment. Part of the amendment allows merchants…

Visa has scrapped what it was calling the Network Participation Fee in place of the Fixed Acquirer Network Fee due to become effective on April 1, 2012.

Read the full article

Accounting and Finance, Credit Card Processing

IRS Merchant Reporting 6050w

by Ben Dwyer

Make sure your processor has your correct TIN and tax filing name. Note: The information herein does not replace the advice of a qualified tax professional. Talk to your accountant about the impact of 6050w and your responsibilities under tax law. Section 6050w Overview 6050w Reporting Requirements Payment Settlement Organizations Third Party Settlement Organizations Merchant…

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 TIN or tax filing names.

Read the full article

Credit Card Processing

5 Great Ways to Get Ripped Off by Credit Card Processors

by Ben Dwyer

1 – Get bundled pricing. Bundled pricing is what you want if you’re a fan of hidden surcharges and paying (way) too much for credit card processing. Ready to get ripped off by credit card processors? Go for bundled (also called tiered) pricing. Type the term “credit card processing” into your favorite search engine and…

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 credit card processors.

Read the full article

Credit Card Processing, Legal

Minimum Charge for Credit Card Purchase

by Ben Dwyer

The short answer is: Sometimes. The longer answer is that it depends on the type of card. You’ll have to follow applicable rules as well. Credit cards: Yes. It is acceptable for you to set a minimum charge on credit card purchases as long as you abide by the stipulations as set forth in your processing…

Many businesses wonder: Is it legal to require a minimum purchase amount for card transactions?

Read the full article

Credit Card Processing exposed