Understanding Hidden Fees: Ecommerce Credit Card Processing

hidden fees in ecommerce payment processing

When your business is engaged in eCommerce, you’ll come across hidden fees that may take away from your business’ overall profit. It’s important to understand what these fees are, especially when using an ecommerce credit card processing system, to help your business run as smoothly as possible for both you and your valued customers. 

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An online shopping cart for credit card processing is the payment gateway for your business’ products online. When your customer goes to purchase items on your website, virtual credit card processing takes place using the processing platform you’ve chosen.

The hidden fees that may show up on your bill can include a PCI compliance fee, transaction fee and check verification fee. Understanding these charges will help you read your monthly statement without any confusion or frustration.

PCI compliance fee.

PCI stands for Payment Card Industry. If your business accepts any form of card or check payments, whether it be online using a virtual terminal for credit card processing or using a credit card machine at your business’s location, you must be PCI compliant. Some merchant processors will charge a PCI compliance fee, but this charge is only fair to receive if your merchant processor gives you resources and tools to help with PCI compliance. If your processor isn’t, this fee is unnecessary because you should not be charged for something that you are not receiving a service in return for. Fattmerchant will never charge you a PCI compliance fee.

Transaction fee.

Whenever you swipe a credit card or when account information is input into your virtual credit card terminal or online shopping cart, this is called a transaction. You’ll be charged for every transaction that occurs. This fee varies by merchant processor and you will be charged either a percentage or dollar amount per transaction. It’s important to note that no matter which processor you have, you’ll always be charged a transaction fee. The key is understanding the charges associated per transaction because you don’t want to have this eat away at your profits if the rate is too high for your business. You should look into a variety of merchant processors that will provide a virtual terminal platform that fits your business according to the amount of transactions you have per month.

Check verification fee.

If you choose a virtual terminal credit card processing system that allows you to accept virtual checks, then you may be charged a check verification fee. Similar to the transaction fee, you’ll be charged per check that needs to be verified. Note that you’ll be charged the check verification fee in addition to the transaction fee. This is also an important fee to understand because although you’re probably not going to have as many checks to process, these charges can begin to add up without you even realizing it.

When using a virtual terminal for all of your business’s payment processing, it’s vital to understand all the hidden fees that may appear on your company’s merchant processing bill to ensure a high profit margin. With Fattmerchant, you can accept online payments as well as traditional payments using a credit card machine without the hidden fees. Ready to focus more on your business’ success rather than your merchant bill? Contact us to make the fatt switch today.  


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