1/17/2024 0 Comments Free credit card terminalYou do not have to use our links, but you help support CreditDonkey if you do.ĬreditDonkey is a credit card processing comparison website. We may receive compensation if you shop through links in our content. Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. Write to Karen Eloriaga at Follow us on Twitter and Facebook for our latest posts. Publication 535 (2022), Business Expenses, Retrieved General Law - Part I, Title XX, Chapter 140D, Section 28A, Retrieved ^ The General Court of the Commonwealth of Massachusetts.^ Connecticut State Department of Consumer Protection.Merchant Surcharging Considerations and Requirements, Retrieved Unfortunately, even if a company's well-known, it can still have its shortcomings. You can test a company's customer service by inquiring about what they offer before applying. Avoid hidden fees and choose a processor that offers transparent pricing. Is there a monthly fee? What about batch fees? Incidental fees? There are many other fees your processor might have. Be sure to check how much debit card processing fees are and if your business can work with them. Debit card purchases will still cost your business. Unfortunately, you're not off the hook with all processing costs. Make sure that your current number of credit card sales can fit that requirement. Some payment processors require a minimum volume of transactions. Long-term contracts often have early termination fees. The downside is that you might end up not liking their service. There's no reason to tie yourself to a long-term contract unless it helps you save money. Many payment processors offer month-to-month contracts. Here are some criteria you can use when shopping around for a processor: What to Consider When Choosing Free Credit Card Processing? Now, if it sounds like it could make sense for your business, the next step is choosing the best processing company to work with. Then paying a surcharge can be worth it for them because they'll get more rewards. For example, they could earn points for dining in restaurants. Tip: If you surcharge, can you make it up to customers in another way? A reward program (like 1 free scoop after X purchases) won't cost you much and gives customers an incentive to shop with you, even if they're charged a little more.Īnother point: customers often use credit cards for rewards. Customers may be willing to pay a surcharge to be able to charge on their card instead. Plus, they already love you and are less likely to switch.Ī lot of professional services (like legal or financial) traditionally use bank transfers to accept payment. If you decide to surcharge, they may understand that you're just trying to survive. Let's say you're a dog groomer and customers love you (yay!). Small local businesses with loyal customers.But if you offer unique niche services or products, then customers may be willing to pay a surcharge, since they don't have many other options. If you're a general merchandise store, there may be tons more that customers can go to. If you allow for credit cards, customers may be willing to pay a surcharge for convenience. Let's say most of the taco vendors in your area are cash-only. What Type of Business Makes Sense for Free Credit Card Processing?Ĭustomers generally don't like surcharges, but here are some examples of businesses that might get away with it: That said, there are some types of businesses that it could work for. Processing costs are part of your business expenses because it's an essential cost of doing business. If not, you could lose customers to them. It's also important to see if your competitors are surcharging. You don't need to risk losing customers from surcharges. Some payment processors offer lower rates if you have high volume, so you can save that way. Customers can also be more forgiving with surcharges if you offer something unique.īut if you're already a large business, you probably don't need it. You can use the money you'll save to expand. Small independent businesses could benefit from free credit card processing because you'll keep more profits. But customers view surcharges as penalties for using cards to pay. It may be tempting to get credit card processing fees covered. Īre all these rules worth it? Let's see if it could be worth it for your business. AMEX, for example, disallows fees when it's not equally imposed on other products. Card brands also prohibit surcharges that would make the consumer choose one brand over the other.
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