About the Credit Card Processing Industry
Information every business owner should know about Credit Card Processing.
When looking for the right company to handle your credit card processing, there are 2 things on the business owners mind.
- How will I be paid for the credit cards I run for my products and services?
- What am I going to be charged for accepting credit cards?
The charge for this service to the business owner is essentially broken down into 2 components.
- The Interchange or Cost that is applied by the major card associations. (This cost is exactly the same for every credit card processor and is set by the card associations.) (See the chart at the bottom of this page for examples of Interchange/Cost as dictated by Visa)
- The Fee's and Rates applied by the Merchant Service Provider and Credit Card Processor.
Here is what that means for the business owner:
- Interchange or Cost is based on a percentage rate that the major card associations decide to charge a business when running credit cards. This Cost is always the same no matter which credit card processor you use, whether it be OGroup, the local bank, your current processor or any other party.
2. Fees applied by the Credit Card Processor and customer care what separate one processor from another and the prime factors to consider when look for the right
company to represent your business to the major card associations.
Traditionally, credit card processors make their money by embedding another percentage rate within your Cost to Visa, Master Card and Discover. This inflation causes greater loss for the business owners profits, especially for higher ticket items.
For example: this means that instead of being charged the underlying cost of 0.61% - 0.95% &
$0.15 to swipe a debit card at Cost, the inflation of the Credit Card Processors additional fees and
rates leaves the business owner paying closer to 1.5%-2% & $0.20 for the same debit card.
Click here to find out how we do things differently.
Our program guarantees that you will ONLY pay Cost + One Flat Fee every month no matter how many or what size your transactions.
The OGroup never inflates your Cost percentages which would otherwise cause major losses of profit on high ticket items.