Deciding on Merchant Payment Processing

As a business owner or as someone who is planning on starting a new business, you will want to get business from as many potential customers as possible. Most customers expect to have the option to pay with a credit or debit card, and increasingly, many shoppers prefer to pay with digital accounts through their Apple Pay or Android payment services. If you want to appeal to these customers in a retail environment, or if you’re making transactions online, you will need a merchant processor to complete these transactions.

credit card transaction

it will cost you a small percentage of your revenue in order to play the game like a pro

There are not really a whole lot of choices when it comes to deciding on a partner for processing payments, and it will cost you a small percentage of your revenue in order to play the game like a pro.

Some of the big names in merchant processing include Paymentech and, but there are also smaller processors out there that can be more budget friendly, and more tailored to your needs. All of the options are going to charge fees and If you want to accept all of the major credit cards, including American Express and Discover you will end up paying higher fees to attract these customers.

amex blue card

This is because rewards cards and credit card companies like Discover and American Express have built in features like cash back bonuses. Other benefits offered to card holders are concierge services, insurance and exclusive incentives. All of these perks are paid for by the merchants who accept these cards. The merchant services provider i.e. the credit card processor will charge you, as the merchant, higher fees to process these cards.

When deciding on a payment processor you will need to calculate or guess about what types of transactions will be typical and what types of transactions will be rare. Some questions that you will need to consider are how many transactions you will expect to have per month, what is the typical or average size of transaction to be processed and how many unique customers will be spending money with your business.

Take some time to figure out these typical scenarios as you compare different payment processing companies. Rates will vary between options, and having the most accurate picture of your scenario will yield you the lowest fees, and therefore, the highest profit margins.