Credit card companies (amex, visa, master card) do not do credit card processing. Neither do banks or credit unions. These companies are card issuers. They run a different kind of business. If you do your processing with one of them you pay too much.
This is the hardest concept to explain to merchants. Prior to the recession ISOs were signing merchants up on a tiered pricing system. You would pay something like 1.37% for qualified, 2.32% for mid qualified, and 4.27% for non-qualified. These rates were developed so that sales people didn’t have to explain what actually took place during the interchange process. They simplify the process by making merchants believe that all Credit Card Processing card swipes are put through on a three tier system that no one has control over. This is rather wrong.
Today you can get your statements online via e-mail. Not only is it convenient and practical option – because you always get the card bill on time, is also environmentally friendly because it saves paper. E-statement is also a safer option, because thieves can not steal your online advertising – as long as your computer is equipped with the latest anti-virus and anti-spyware programs.
It is important not to mix purchases made for the business with those of the family or for yourself. This is the reason why it is important to get a business credit card that will be used solely for making purchases meant for the business’ daily operations.
Any changes in rate would certainly make an impact on the cash flow of small business. A merchant looking for a credit card processing provider should be knowledgeable on pricing and charges that accompanies that services he or she is applying for. This information would be useful in a lot of ways because can be able to compare and go for a competitive rate. Make sure to go with a processor that is willing to explain everything that includes their services and pricing. The rates should be clear from the start. As a merchant, it doesn’t hurt to ask questions.
The following step is to learn more about the process of application. The Microsoft Dynamics Credit Card Processing Processing Businesses will request banking history of your business and of your personal accounts.
The big difference is with variable interest you can make additional payments without being penalised (or just a minor fee is charged on the transaction depending on the bank). However with fixed interest, you are agreeing to a set amount of interest over the course of the loan. In fact you could pay out a 5 year fixed interest loan in 6 months and you will still be charged the full five years of interest.
So you owe it to your customers to make sure you have the most secure and safest credit card processing services. And you owe it to yourself as well, because aligning your business with a merchant account provider that offers superior service will help build your business.