how to calculate credit card processing effective rate

Quoted rate or qualified rates are not the same as the effective rate. Video example for a retail store with swipe transactions. By calculating your effective rate you have a basis for conversation with a credit card processing consultant. An experienced consultant will know roughly what range your effective rate should be with certain information about your business. This helps open or close the door on whether it’s worth exploring changing your credit card processor.

Don’t be fooled by quotes for low qualified rates appearing to be the cheapest credit card processing. Managing your payment processing costs means managing all rates, not just the qualified rate.