It’s a fact that more and more people across the world are now opting for digital payments such as payments through credit or debit cards. This is the easiest mode to make payments for any kind of purchase of a product or service. But have you ever wondered what are the key factors that determine card payment processing fees? Here are some of them.
Type of business - This is one of the most common factors that determine the processing charges for credit or debit card payments. The charges for various types of businesses are not the same, which means the processing charges for a retail store owner can be different than what it can be charged by an agency offering critical services like window cleaning.
B2B businesses - This is another common factor that makes an impact on the card payment processing fee for a business. B2B companies such as large-volume or government suppliers can get Level 2 and Level 3 processing for lower credit card processing rates. But it is worth notable that this discount isn’t available for all types of businesses or companies that have traditional eCommerce or physical terminals.
High-risk level businesses - If you are in an industry where risk is involved or if you are operating a business like security guard services or high-rise building windows cleaning services, your business falls in the ‘high-risk organization’ category. For such businesses, the card payment processing fee is relatively higher than for normal businesses. This might add up to your overall operational cost.
Type of transaction - Another very common factor that can make an impact on the charges you need to pay for online card payment transactions is the time when the payment is made by the consumer or business partner or retailer. another thing to note here is that card-present transactions often come with lower processing fees than card-not-present transactions. So make the most of your business growth plans and reduce the payment transaction fee to grow in the highly competitive world.
