Reading into your statements

3 Tips to Reading Your Processing Statements

As a merchant, you likely know the importance of reading your credit card processing statements. However, taking the time to read your statements does not do you much good without the proper knowledge in how to approach it. When you read your credit card statements without effective practices in place, you run the risk of paying more than you should. If you understand how credit card statements work and you understand the different fees involved, you will better be able to maximize your budget and profit-making potential. With this in mind, here are 3 helpful tips to reading your processing statements. 1. Questions to Ask While Reading Your Credit Card Processing Statements The first thing you need to establish when it comes to reading your statements are the particular questions you need to be asking. These questions will help you read your statements purposefully and ultimately ensure that you are…

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Overpaying for Payment Processing

Three Ways to Tell if You’re Paying Too Much For Credit Card Processing

Many businesses overpay for their credit card processing, possibly without even realizing it. So how do you know if you are paying too much? There are three major ways to tell if you’re overpaying. The first one is to look for the word “non-qualified” on your monthly billing statement. If you see that word, there’s a good chance you’ve been paying too much. “Non-qualified” is associated with the tiered pricing model, in which case processors can randomly choose which transactions they want to charge you more for, not based on any legitimate reasoning. If you want to lower your costs, you should switch to a processing company that uses interchange plus pricing instead. This kind of pricing structure distinguishes between different components and allows for more transparency in the reporting. Compared with tiered pricing, it usually leads to lower costs for merchants. If you are using a flat rate processor,…

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What is interchange

The 3 Most Important Things to Know About Interchange Fees

When you’re looking for a credit card processor you’ll hear about different pricing structures such as tiered pricing, flat-rate pricing and interchange plus pricing. We want to pull back the curtain on a piece of interchange plus pricing. If you already have a processor, you might know about interchange or interchange plus pricing but what we’re going to talk about today is exactly what the interchange fee is. Whether this information is familiar or new, we hope it will help you make a smart decision about choosing a payment processor. 1. Interchange Is Visa’s® Cut (and MasterCard’s® and Discover’s® and Amex’s®… ) To put it simply, interchange is the fee that Visa, MasterCard, Discover, etc. take out of the transaction. It’s the same for every single merchant. All of them. Everywhere. So, when you see an interchange fee think to yourself “Visa’s cut.” These fees are standardized and the sandwich…

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