Credit Card Processing

In today’s fast paced marketplace, the ability of a business to accept credit cards is simply taken for granted by most customers. In some places, in fact, plastic is far more prevalent than paper. If your business has yet to take the leap into the modern era of commerce, it only takes a few moments to learn about the many perks of credit card processing and the simplicity of making it possible.

Merchant Accounts

No business can accept payment via credit account until it has set up a special type of bank account called a merchant account. Merchant accounts cannot be administered by a normal investment bank most familiar to the public, but can only be supplied by a merchant bank, which is a specialized type of financial institution that deals only with registered legitimate businesses.

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In today’s economy every cent a merchant can save counts, however you might be surprised how many merchants are being robbed every month, simply because they are unaware of what fees they are paying.

Here are just 5 ways merchants are being robbed by issuers and acquirers.

1. Rewards Cards: It is surprising how many merchants are unaware that they are being charged a higher rate every time a rewards card is swiped in their establishment.  Often times rewards card are swiped at a 3%-4% rate, an increase of as much as 2 to 3 points above their inital processing rate.

2. Rewards/Bonuses: Merchants might be surprised to learn that they not the issuing banks pay for the customers rewards and bonuses on special cards.  That’s right merchants are paying for free flights, cruises, give backs and a host of other programs created by issuing banks to attract both personal and business card holders.  These cards aren’t just created in the drop of the hat, actually issuing banks spend considerable amounts of time creating specialty cards.  The process involves a team made up of individuals across various departments, from sales and marketing, legal, underwriting, financeand card development.  These cards are carefully designed and targeted towards specific individuals and businesses.  They are well planned out and every possible way for the issuing bank to profit and reduce direct cost has been explored.

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