What are the major factors impacting my Real Rate to accept card payments?

For example, a $0.10 transaction fee as a percent of a $10 sale is much higher than the percent on a $100 sale. When comparing your Real Rate with other businesses, the average transaction size is an important metric.

For example, a check card transaction carries a lower Interchange rate than a rewards or business card transaction. The mix of customers and the type of card they present for payment will cause differences in your Real Rate from one month to the next; (i.e. Visa has a greater market share). Most banks charge “Non-Qualified” surcharges for rewards and business card transactions, increasing your Real Rate.

For example, swiped cards are processed at lower Interchange costs than key entered transactions. Most merchants today are still paying “Non-Qualified” surcharges on key entered transactions, leading to higher Real Rates.

For example, monthly statement fees, daily batch closing fees, monthly minimum fees, annual fees, card data security compliance fees and other invented fees will calculate higher Real Rates. When comparing your Real Rate with other businesses, it is important to look for those with similar sales volume. A $10 monthly statement fee as a percent of $3,000 a month in sales is much higher than the percent on $30,000 a month in sales.

For example, does your business provide a generous return policy? If your merchant discount fees on your Gross sales versus your Net sales after cardholder returns are subtracted, then your Real Rate will be much higher.

For example, restaurants benefit from special low Interchange rates on any transaction less than $15 while schools get low incentive rates for both swiped and key entered transactions. Some incentives require registration but most are simply based on your industry. Without the proper rate structure, your business cannot benefit from incentive Interchange offerings.