Credit Card Fee: Which Is A Better Deal?

Are you thinking of accepting credit card as another method of payment for your business or are you accepting one? Probably you have been researching from various banks or other companies that provide merchant accounts. If that is so, then you are aware that credit card fees come various ways. If you have not, perhaps this topic may help you determine which company provides a better deal for your accepting credit card as another method of payment or perhaps they are about somewhat similar in term of getting their fee from you. Either way, I hope this article will help you consider aspects you have not thought before.

Some credit card companies charge a fixed monthly fee (e.g. $15.00) plus a small percentage (e.g. 1.5%) per transaction every time you accept a credit card, while others may simply impose a slightly higher per transaction rate (e.g. 2.75%) with no monthly fee. As a small business owner, how would you know which one is a better deal for your business? Or, should we say which one will cost you less in accepting credit cards?  One way to find out is to use a formula that is used often in Cost Accounting:  Sx = VCx + FC

S – represents Sales                               VC – represents Various Cost

F – represents Fixed Cost                        x – is the unknown amount that we hope to find

Using the above example monthly fee and per transaction rate:

        Sx = VCx + FC

0.0275x = 0.015x + $15

0.0125x = $15

         X = $1,200

So, what does it mean? It means, when your total credit card sales is at $1,200 in a month, you are paying the same amount in fee (in the above scenario is, $33.00 – calculation not shown) regardless of which option you choose. Therefore, if your total monthly credit card sales exceed $1,200 on average, you are better off paying the monthly fee and take the lower per transaction fee. If however, your total monthly credit card sale is less than $1,200 on average, it will cost you less when choosing the higher per transaction rate and pay no monthly fee. 

I hope you will benefit from this topic. As always, please share what you have in mind. I would like to read them.

Thanks, 

Ruby

If you enjoyed this article, Get email updates (It’s Free)

Be Sociable, Share!

73 Replies to “Credit Card Fee: Which Is A Better Deal?”

  1. Oh my goodness! Incredible article dude! Thank you, However I am experiencing issues with your RSS. I don’t understand the reason why I can’t subscribe to it. Is there anyone else getting identical RSS problems? Anybody who knows the answer will you kindly respond? Thanks!!

  2. After going over a handful of the blog articles on your website, I really like your technique of writing a blog. I saved as a favorite it to my bookmark webpage list and will be checking back soon. Take a look at my web site too and let me know how you feel.

  3. I blog often and I really appreciate your information. This great article has truly peaked my interest. I am going to take a note of your blog and keep checking for new information about once a week. I opted in for your Feed as well.

  4. Hi, I do believe this is an excellent website. I stumbledupon it 😉 I may come back yet again since i have book-marked it. Money and freedom is the greatest way to change, may you be rich and continue to help other people.

  5. Aw, this was an extremely nice post. Finding the time and actual effort to make a great article… but what can I say… I procrastinate a whole lot and don’t manage to get nearly anything done.

  6. Howdy! This blog post couldn’t be written any better! Looking through this post reminds me of my previous roommate! He constantly kept talking about this. I most certainly will forward this article to him. Pretty sure he will have a great read. Thank you for sharing!

  7. Aw, this was an extremely nice post. Taking the time and actual effort to create a very good article… but what can I say… I hesitate a lot and don’t manage to get nearly anything done.

  8. Hi, I do think this is an excellent site. I stumbledupon it 😉 I’m going to revisit yet again since I saved as a favorite it. Money and freedom is the greatest way to change, may you be rich and continue to guide other people.

  9. I’d like to thank you for the efforts you have put in penning this blog. I’m hoping to view the same high-grade blog posts by you later on as well. In fact, your creative writing abilities has encouraged me to get my own site now 😉

  10. I just want to mention I am just all new to blogging and site-building and truly liked your website. Almost certainly I’m want to bookmark your blog . You absolutely come with fabulous articles. Regards for sharing your web-site.

  11. What i don’t realize is if truth be told how you are no longer actually a lot more well-appreciated than you may be now. You’re so intelligent. You already know thus significantly when it comes to this matter, produced me in my opinion believe it from a lot of various angles. Its like women and men aren’t fascinated unless it’s one thing to do with Girl gaga! Your personal stuffs great. At all times deal with it up!
    parajumpers jacket for sale http://www.parajumperssalewomen.com/

  12. After checking out a number of the articles on your site, I really like your way of blogging. I saved as a favorite it to my bookmark website list and will be checking back in the near future. Take a look at my website as well and tell me your opinion.

  13. A fascinating discussion is definitely worth comment. I think that you should write more about this topic, it may not be a taboo subject but generally people do not speak about these topics. To the next! Many thanks!!

  14. I do trust all the ideas you’ve introduced in your post. They are really convincing and can certainly work. Still, the posts are too short for beginners. Could you please extend them a little from subsequent time? Thanks for the post.

    1. Yes, you are right my posts are not very long. To be honest, I am not used to blogging; hence not much description. Thank you for your encouragement to write more. I will try to expend it in the near future.

  15. I would like to thank you for the efforts you’ve put in penning this blog. I am hoping to see the same high-grade content by you in the future as well. In truth, your creative writing abilities has inspired me to get my own site now 😉

  16. I simply want to say I am just new to blogging and site-building and definitely savored you’re web blog. Likely I’m want to bookmark your website . You really have perfect article content. Bless you for sharing your blog site.

  17. You made some really good points there. I checked on the internet for more information about the issue and found most individuals will go along with your views on this site.

  18. Howdy! This blog post couldn’t be written any better! Looking at this article reminds me of my previous roommate! He always kept talking about this. I am going to forward this information to him. Fairly certain he’ll have a very good read. Thank you for sharing!

  19. An outstanding share! I have just forwarded this onto a coworker who was conducting a little homework on this. And he in fact bought me lunch because I stumbled upon it for him… lol. So let me reword this…. Thank YOU for the meal!! But yeah, thanks for spending the time to talk about this matter here on your blog.

    1. Hi Katia,
      Thank you for sharing it with your co-worker. You deserve the free lunch! You have been a great co-worker who is willing to share. Please let me know if I can be any help in the future.

      Thanks,
      Ruby

    1. Thank you for your checking my mistake and telling me about it. I appreciate your input very much. If you could direct me to the specific area, I will correct it. Thank you once again.

  20. Hiya, I’m really glad I have found this info. Nowadays bloggers publish just about gossips and net and this is actually irritating. A good blog with interesting content, this is} what I need. Thanks for keeping this website, I will be visiting it. Do you do newsletters? Can not find it.
    hermes belt http://www.hermesbeltuk.com/

  21. I just want to tell you that I’m newbie to blogging and site-building and seriously enjoyed you’re blog site. Probably I’m want to bookmark your blog post . You amazingly have great article content. Thank you for revealing your blog site.

    1. I am thrilled that you enjoy my article and most importantly your taking time to respond. Please visit often.

      Thank you,
      Ruby

    1. Thank you for your kind comment. I myself am very new to creating my website. Do you know any plugins that you can recommend?

      Thanks,

      Ruby

  22. you’re really a just right webmaster. The website loading velocity is incredible. It sort of feels that you’re doing any unique trick. Moreover, The contents are masterwork. you’ve done a wonderful process on this topic!

    1. Thank you, I am very pleased to hear that you are enjoying information as such. It gives encourages me to write more next time. Thank you once again for sharing your thought.
      Ruby

Comments are closed.