Transaction Processing Rates
What's Behind That Rate You Were Quoted ?
Credit Card Processing Transaction Rates:
There is no single transaction rate for merchant accounts.
Credit card transaction merchants have several factors to consider when determining a rate that will be applied. Often, merchants are quoted a single low rate such as 1.5%. This is a very misleading number as there are many ways to process any given transaction. Rates are deduced by knowing all the variables involved for a specific transaction. It all begins with the type of transactions you host.
As Far As Rates Go, There Are Two Types Of Transactions:
Keyed transactions are entered by manually typing in the customers credit card and personal information into a credit card terminal, or virtual terminal solution. Swiped transactions typically have the cardholder and the credit card present at the time of sale. From the perspective of the credit card company, a swiped transaction is generally more secure than a keyed entry and therefore lower rates apply to those types of transactions. Two other factors that also affect the rate applied are the type of card used and the information surrounding the transaction.
The Type of Credit Card Used:
Factors That Affect The Rate Applied: