The credit card processing system for a website is as complex as can be. There are numerous ecommerce experts who have stayed in the industry for a really long time and still cannot predict with a fair amount of precision what all exactly goes into and contributes to the ecommerce credit card processing fees.
As the world of ecommerce website development gets highly concentrated and competitive, online store owners look for ways to save various outflow of money under different categories. However it is not possible to effectively manage the same without understanding the determinants of the ecommerce card processing fees. The fees charged by the credit card companies on your online ecommerce store depends on various factors. These factors include – nature and type of your business, the customer cards you are dealing with, the type of transactions that take place and the time lapse in those transactions. All these factors are inclusively discussed below.
1.The Nature and Type of Your Business –
one of the major factors which decided upon the credit card processing fees of your ecommerce store is the nature and type of your business. It does matter what exactly you are selling and who all are your buyers. Some of the industries has an in built disadvantage of being more vulnerable to frauds and often tends to pay higher fees than the usual. Proper care must be paid as some of the card processing companies may tag you in high risk category although in real you may only deserve a low risk and subsequently low cost category classification. It depends upon your analysis, market knowledge and negotiation capabilities to see under which category your online store is being tagged.
2.The Type of the Customer Cards –
Simply put, the more glamorous the card looks, the more it is going to cost you. Even when you see the display of various processing fees, do not get swayed. More often than not these are only the mention of the lowest tier for instance the preliminary Visa card offering no advantages. However a basic plan is not an enough solution for you, as everyone look forward to cash backs and travel credit cards. Thus make sure to include those when you inquire about the charges. Besides if you are particularly a business to business ecommerce store, you would be requiring the business credit cards and rewards which are usually the most expensive of all the available options. Thus if you are anticipating a lot of business customers, pay close attention to the processing fees of the same.
3.The Type of Transactions That Takes Place –
The credit card processing companies charge more for the online store as compared to the brick and mortar store because the online stores are more prone to online frauds than the offline stores. The online frauds flourishes in the market despite all the measures to protect it and thus the fees is extra too. If the actual figures from PayPal are anything to go by, the online frauds are 17 times more prevalent than the offline frauds. The figures may not be that high and other survey authorities professes the same, however such a big insecurity in the world of online business and ecommerce web development, makes the credit card processing fees a bit more costly and demanding.
4.The Time Required for Transactions –
Transactions time basically mean the time gap between when the authorization and ascertaining the purchase and when exactly the purchase is settled through the accounts. The transaction time can have high implications on the credit card processing fees. Usually, the purchase is charged at the point of authorization itself. However there could be delays in the time of authorization, processing or if the customer has to sign up for the free trials. The same delays may cause an increase in the total cost.
It may get exhaustively complex for a store owner to try and calculate the ecommerce credit card processing fees of the online store. However there are various websites available over the Internet which provide the store owners easy and reliable ways to calculate the same. If in any case you are flirting around with the idea to determine your credit card processing fees and work towards reducing it, the following may prove to be fruitful to you -
1. FeeFighters – The samurai graphic is reassuring and they offer you a guaranteed saving of 40 percent within the first three minutes. Try out their free credit card processing fees calculator and feel the difference. http://feefighters.com/
2. BancCard Central – Avail yourself credit card processing fees and free merchant accounts with Bankcard central. http://www.bankcardcentral.com/
3. Flagship Merchant Services – They are regarded as one of the est merchant services providers. http://www.flagshipmerchantservice.com/
4. Merchant Warehouse – Another power house for the merchants to receive superior credit card processing and merchant account facilities. Its services are available at really low rates and offers huge savings for the users. http://merchantwarehouse.com/
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