Hardwood Floors October/November 2024

By Chad Ogden

While there’s a lot we could address in this article, for the sake of brevity, I’ll just highlight some of the main things you should watch for when it comes to credit card processing. Credit card fees are made up of three main charges:

THE ISSUING BANK FEE This is a fixed fee from the bank supplying the card – for example, Capital One, Wells Fargo, a local credit union, etc. The fee you’re charged also is affected by the type of card that your customer is using to make the payment (business card, personal card, travel points, cashback, etc.). So, the issuing bank fee is dependent upon the bank and the card used. VISA/MASTER CARD CHARGE This is also a fixed fee that you have no control over. It is a fee that is charged on every transaction by Visa/MasterCard. THE PROCESSING FEE This is controlled by the processing company. This is your “rate,” which is variable and dependent on the processor. These rates often can be confusing, so I will give you a basic overview in layman’s terms. Flat Rate – This is where you’re assessed a flat rate, regardless of the type of card you take. Generally speaking, selecting a flat rate will be more expensive for most dealers. Flat rate processing means you’re being charged enough to cover the processing fees for the most expensive cards, even when your customer may have used the least expensive card. Flat rate cards might be good for dealers who consistently are going to be charged a higher rate – for example, if you’re a really small company or if you’re based in an affluent area such as Manhattan. But for the majority of dealers, flat rate is not the best option.

the magazine of the national wood flooring association

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