What You Need To Know About Merchant Account Providers for Small Business: Credit-Card Processing and Fees
I get a lot of questions from small business owners about their merchant statements from credit card processors. What I’ve found is that there are a lot of business owners out there who simply don’t understand their statements, much less how to reduce the amount that they pay in processing fees. In most cases, the problem is that merchants don’t quite grasp how merchant account providers for small business work, especially when it comes to processing debit and credit cards.
It’s More Complicated than You Think. One common misconception is that processing credit and debit cards is simple. Many merchants assume that once a customer makes a purchase, their card information sent directly to Visa, Discover, MasterCard or American Express and that these companies authorize the transaction and collect a percentage of the transaction as a processing fee. In reality, it’s much more complicated.