Transaction fees and Discount Rates for Credit Card Processing

1. Pt Unified Trade Indonesia Pt Unified Trade Phone Number: +62 21 80675726 Email: customerservice@ptunified.net Transaction fees & Discount Rates for Credit Card Processing Giving your consumers a variety of payment alternatives is crucial in today's cutthroat business market if you want to sell them your goods and/or services pt unified trade. One of, if not the most, crucial first choices you'll make when opening a new company is opening a merchant account so you can take credit cards from your consumers. To help you choose a provider of credit card processing services, the following article will discuss discount rates and transaction costs. Transaction fees and discount rates are mutually exclusive. These are the costs associated with handling credit card transactions. A percentage is

2. subtracted from the overall sale price to represent the discount rate. For instance: If you charge $100 to a customer's credit card and your eligible discount rate is 2.20 percent, processing that transaction will cost you $2.20. You also pay a transaction charge, so that's not everything. If your transaction charge is 25 cents, processing the $100 credit card transaction would cost you $2.45 in total. What exactly does qualifying discount rate mean? You won't always pay the same proportion as a discount. It will vary depending on a variety of elements, including the type of card and how the card is actually processed. The majority of debit and credit cards used by individuals will come within the qualifying rate category. However, you will pay a greater discount rate if you use a corporate, commercial, government, foreign, or personal rewards card. These cards have a discount rate that might be between 1% and 2% less than the eligible rate. This implies that if you take foreign cards and your qualifying rate is 2.20 percent, your rate might be as high as 4.20 percent pt unified trade jakarta. This may mount up over time, so it's crucial to take it into account when setting your product's or service's price, especially if you want to conduct many business-to-business transactions or market your goods worldwide.This may mount up over time, so it's crucial to take it into account when setting your product's or service's price, especially if you want to

3. conduct many business-to-business transactions or market your goods worldwide. How you handle the credit card is another element that affects the discount rate you pay when processing credit cards. When using an online merchant account, businesses who swipe credit cards often pay a lower discount rate than those who enter credit cards in manually. While a merchant who types in their transactions will often pay a qualified rate of 2.40 percent, a merchant who swipes credit cards will typically pay a qualifying rate of close to 1.80 percent. Risk is the root cause of this. Pt unified trade believes that if the consumer is present throughout the transaction and the merchant is able to swipe their card via credit card processing hardware or software, there is a lower likelihood of the transaction being fraudulent or disputing. Most credit card processing firms will only refer to their qualifying rate when they promote or try to sell you over the phone - thus it is crucial you inquire about qualified, mid qualified, and non-qualified rates also when picking a company for credit card processing services.