How to Save Money on Online Transaction Processing

save money on online payment transactions

Accepting credit cards in your business is a great move to boost sales. However, it does make things a little more complicated since now you have another thing to worry about — online transaction processing. Once you delve into this world, you have a whole lot of fees coming your way. Some of these seem to be hidden, while some are out there flaunting themselves. The trick to dealing with these pesky fees is to do your research to make sure that you’re not paying any more than you should.

A Match Made in Provider HeavenHow_to_Save_Money_on_Online_Transaction_Processing_copy

Your first move should be to find the right provider, and looking for a provider is no joke. It can feel a little overwhelming due to the many differences that appear on the surface. Some providers can say that they offer incredibly low rates, only to later charge for other services. Others can genuinely have low pricing for all their services, but slack on the customer service side of things, which is never good. The best way to go about this first step is to understand all the fees and possibly hidden costs before committing to any contracts (it may also be a good idea to find out what the policy is on cancelling this contract). Essentially, your main goal here is to find the provider that will benefit you and your business the most.

Varying Fees

Your next goal is to understand just how fees work. At a very basic levels, there are two types of fees: interchange and additional fees.

  • Interchange fees are simply the fee that the credit card companies charge for every transaction. It’s essentially comprised of a percentage of the transaction plus a “per-transaction fee”. This is decided by credit card companies and banks and it usually depends on what kind of card it is, what is being purchased, etc.

  • Additional fees are charged by your service provider, which can also be the bank that’s providing you with your merchant account. These fees are also a combination of a percentage of the transaction plus the per-transaction amount.

Sometimes, small businesses will not be told about these two separate rates, but instead given one base rate called the “discount rate.” When this happens, you essentially have no idea which part of the interchange fee is going to the provider. When you insist that these two fees be presented separately, it allows you to see just how much the provider is getting from your rate and you can, in turn, make a better decision. This amount is generally what causes the difference in the different rates that merchants are charged.

Details, details, details

All in all, by accepting cards you do have to prepare to pay some fees. However, this doesn’t mean that you should pay unnecessary amounts if you have the ability to save them instead. Keep records of your payments and check them regularly so you can make sure your business is being treated honestly and fairly with fees and processing.

At Fattmerchant, we believe that credit card processors should not make a variable income from your business. That’s why Fattmerchant offers three transparent plans that vary based on a flat monthly fee and a small transaction fee. There are never any hidden fees or crazy markups. We wouldn’t want someone to do that to us, so why would we do that to you!

If you are ready for some “fatt” savings on your merchant services cost, contact us today so you can begin saving 40% on your monthly merchant services bill. Visit to find out more details.

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