Cross Border Fee

Cross Border Fee: What, Why & How It Works

With the rise in eCommerce and international tourism, cross-border transactions are more common than they’ve ever been. It’s no surprise when you think about it. In the world of information and global connectivity, any merchant with a product can find buyers around the world. If you want to source products from China, you can. If you want to buy Japanese linens direct, you can. There’s no end to options for both businesses and consumers these days. The growth potential and profits gained have been staggering, but international payments come with what’s known as a cross border fee (charged by cardmember associations including VISA, Mastercard, etc.) When running a business (especially one that conducts business online), you may have been surprised by the number of fees associated with accepting payments. If you recently started accepting international transactions, your assessment fees are going to be higher than before — from dealing with…

Read Full Post
Chargeback Fee

Chargeback Fees Explained + 7 Tips for Prevention

Chargebacks are painful and expensive. Billions of dollars are lost in chargebacks by businesses every year, and in 2017, the average dollar in chargebacks cost merchants $2.40. That means for $500 in chargebacks, you could be paying up to $1,200 in fees! Now expand that number over every chargeback and multiple years in business, and it’s easy to see why this is a big issue for many businesses. Chargeback costs include: The immediate revenue of the lost sale. The possibility of forfeited merchandise. The non-refundable chargeback fee charged by your acquiring bank. Your bank charges these fees due to the administrative costs of reversing the transaction. You also risk your business reputation and ability to accept credit card payments when incurring chargebacks fees. If you rack of a high amount in a short period of time, credit card networks may temporarily block you or your bank may restrict certain financial…

Read Full Post
Credit Card Surcharge: Fees, Laws & More Explained

Credit Card Surcharge: Fees, Laws & More Explained

The days of almost exclusively accepting cash payments are long gone, and electronic payments and credit cards are now the norm. Some new businesses are even opting out of cash altogether — deciding to save overhead costs by only supporting lean, cheaper merchant hardware. And these changes are happening for good reasons, no one doubts that electronic payments have dramatically improved financial efficiency and consumer convenience, but with that “convenience” comes additional fees — namely interchange rates & processing fees. And those fees really add up. So much so that many businesses have opted to add a credit card surcharge to payments conducted with cards to compensate for this loss. This is typically a low percent or flat rate. If you’re considering this in your business, you need to be careful. The laws around surcharges change often and vary state by state. Customers aren’t always thrilled by the practice, either….

Read Full Post