On August 2nd, PayPal will be increasing their credit card processing fee from 2.9% to a whopping 3.49%. And they’re not alone – many payment service providers have increased their rates – even Visa and MasterCard implemented wholesale increases in April of this year.
Small and medium sized businesses across the U.S. are tired of seeing these fees add up every month and they’re faced with this decision: Will they absorb the ever-increasing payment processing fees that many large providers are implementing, or will they pass the higher cost down to customers in the form of surcharges and increased sales prices?
“Us, we’re willing to take the loss if that’s the case. But if not, if we need to raise our prices, we’ll raise them. Not as much. We just want to be a unique kind of business where we don’t charge as much,” explained Caridad Marrero, Owner of Elevated Apparel by C&C, also known as Elevated Customs Inc., in Lehigh Acres, FL.
Thankfully there is another choice. Unlike larger providers like PayPal and Venmo that have a “one-size-fits-all” pricing structure, smaller providers like Merchant Direct Processing have the flexibility and the incentive to custom-design a pricing structure for each individual client, ensuring that each merchant is paying the lowest possible amount in fees for accepting credit cards.
Credit card processing fees range from 0.05% to 3.9% per sale. The price a merchant pays depends on several different factors, such as the specific type of card, i.e., debit, rewards, corporate, etc., as well as how the payment was processed. At Merchant Direct Processing, we tailor a fee structure based on the specific types of transactions a merchant processes the most, and thereby generate the lowest possible bottom-line cost.