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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.

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This entry was posted on Tuesday, May 19th, 2009 at 11:25 am and is filed under rates, video blog. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “how to calculate credit card processing effective rate”

  1. best Credit Card Processing for non-profits | credit card processing Says:
    June 8th, 2009 at 1:05 pm

    [...] all over the place. So how can you tell if  you are getting a good deal? A typical average is 3% effective rate for online credit card processing. This rate varies by target audience and many factors, and can be [...]

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