Quiz: How Much Do You Know about Credit Card Processing Statement? | credit card processing statement

One of the most important things on your credit card processing statement is the interchange fees you pay to the various issuers of credit cards, regardless of who you use. These fees are charged to you by all credit card processors and are usually the same whether you use a different credit card processing company or not. They also vary according to the kind of card you accept. For instance, if you are using a particular processing service for one brand of credit card, the fees charged will also differ from those for another brand of credit card. It will often depend upon which brand is preferred by the customer.

Credit card processors calculate the interchange fees they charge you according to certain factors. They include the issuer of the credit cards, the amount you charge for each transaction and other such charges. There is a standard formula for calculating these fees, which you must follow. Some of these factors are the annual percentage rate (APR), the minimum payment amount, the annual fee charged and any other fees that may be applicable. All these charges have to be paid at the time of processing your credit cards.

Step One: To get the most accurate information on the fees you will be charged, you will need to first check out the APRs. Calculate the effective rate of this particular charge and then compare it with the APRs of all your competitors. The effective rate is the amount that the credit card processing statement you get to quote will represent as the lowest possible fee. This is the lowest fee that you will have to pay. If you find any other charge in your credit card processing statement which is significantly higher than the effective rate, you should eliminate this one from your considerations.

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Step Two: The next thing that you will want to do is to check out the total fees. When you compare the fees charged for different amounts of transactions, you will see the difference between the total fees and the effective rates. The total fees will be what you will have to pay before the cash advance and other charges are taken out. If there is any other fee that is significantly higher than the total fees, you should drop this one from your credit card processing statement too.

Step Three: The last step is to check out your competitor's credit card processing rates. You can do this by logging onto their websites and looking at the APRs and their interchange fees. The interchange fees refer to any extra costs that the credit card processing service has to pay in order to process your transaction. Usually, you will have to pay three different fees if you want to send an electronic or paper card, or if you want to use a mobile service. Make sure that the credit card processing service that you will be using has reduced these fees for their cards.

By following the above three steps, you will be able to understand your credit card processing statements better. You can then make an informed decision on which processor is going to give you the best service. Do not simply accept the processing rates that the processor gives you. Check them out first! Remember, you can always change your processors if you find one that is giving you a worse rate. Just make sure that when you check your statements, you compare their rates.

How To Read A Credit Card Processing Statement - BancardSales

How To Read A Credit Card Processing Statement – BancardSales | credit card processing statement

Complete Guide to Analyzing A Credit Card Processing Statement - credit card processing statement

Complete Guide to Analyzing A Credit Card Processing Statement – credit card processing statement | credit card processing statement

Complete Guide to Analyzing A Credit Card Processing Statement - credit card processing statement

Complete Guide to Analyzing A Credit Card Processing Statement – credit card processing statement | credit card processing statement

Understand your credit card processing statement - credit card processing statement

Understand your credit card processing statement – credit card processing statement | credit card processing statement