Credit Card Processing – How Much Should it Cost?

Are you planning to incorporate credit card processing in your business? You will need the services of a good credit card processing company to start you up. With so many agencies in the market, it is hard to decide which credit card processing solution is best for your business. A good way to start is by comparing the fees and cost of services offered by various credit card processors. Following are some of the costs involved in accepting credit and debit cards. Echeck Processing

Cost of hardware

Hardware is the most expensive investment. The point-of-sale (POS) credit card terminals cost anywhere between $150 and $700. Wireless models fall in the range of $500 to $1000. Higher end models with added features cost even more. The cost of the terminals depends on how useful the additional features are, such as security features, and the look of the machines.

Depending on your business plan, you may choose to buy or lease credit or debit card terminals. Investing in hardware is cheaper in the long run, but if you are unsure of your long term plans it is better to lease the machines. Leasing charges are usually in the neighborhood of $20 per month.

Many credit card processing companies include installation of POS terminals in their package, along with creating merchant accounts for the business. This may be cheaper than purchasing terminals separately. However, you also need to consider the agency’s charges for other services such as payment gateways, compatibility with an existing shopping cart application, virtual credit card processing terminals, etc.

Installing POS terminals to process credit or debit cards is a safer option than processing the card manually over the phone. The verification process takes longer on the phone and it does not assure the availability of funds when your company actually processes the charge. As the verification and processing are carried out at different points in time, there is a risk of losing money.

Cost of processing fees

Credit card processing companies charge various kinds of fees. The discount fee is the main fee by which card processors make a profit. Credit card processors charge additional fees for various services, and this is where it gets difficult. Businesses have to take a call on the value of the additional fees before signing the contract.

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