What rate are you really paying on your Credit Card Processing?
Updated: Jan 18, 2022
How Do You Know What You Are Truly Paying?
(Hint: it's NOT the same as the rate they tell you!)
It’s simple. Take a calculator and divide the total fees by the total sales. You can usually find the fees at the end of the statement and the sales near the beginning of the statement. This will give you a percentage. This is what you are truly paying.
(With one exception: if you are paying any annual fees, these need to be divided by 12 and added to the fees. Often these can be hundreds of dollars).
If the fees are $543.75 and the total sales (or deposits) are $8,959.44, you divide $543.75 by $8,959.44 and you get .06069, or 6%.
Does that sound like you are over paying, if this was you?
PayPal is 3.49% and 49 cents. Most of my accounts are 2%ish or less. 1.50% is common. The above account saved over 50% of his fees when I signed him up. This will give you perspective on if you are over paying.
Are you overpaying? Book an appointment with Jan Osburn today, and start saving money on your credit card processing asap!