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The Cheapest Small Business Credit Card Processing Known To Man

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The Cheapest Small Business Credit Card Processing Known To Man

Cheapest Small Business Credit Card Processing

Have you asked yourself, what is the cheapest credit card processing for small business? If you have, you probably feel like you’ve been paying too much in processing fees, and you’re not alone.

In fact, almost every merchant that we talk with on the phone daily feels like they’re being ripped off. Whether it’s hidden fees or high percentage rates, when it comes to finding the cheapest small business credit card processing options, most business owners are drawing the short straw. We think that’s ridiculous, and we believe that honest processing should be available for everyone.

If you want your credit card processor to also engage in mobile credit card processing, find a processor that supports those platforms. Companies that support mobile processing should be able to accept both in-store payments and mobile payments.

Financial institutions like Bank of America push cards with the highest rewards because more people will sign up for them. However, they don’t pay the money back rewards. Instead, that burden falls on the business owner.

Finding the Cheapest Small Business Credit Card Processing for Your Business

What is the cheapest credit card processing for small businesses

To find the cheapest small business credit card processing, you have to know what to look for. You need to know where companies are hiding the transaction fees that are taking your money. In this article, we give you 5 tips to help you receive the cheapest small business credit card processing available.

Also make sure your credit card processor is keeping your customer’s information safe. Credit card processors are forced to maintain PCI compliance, or else face additional fees.

#1- Lock in a Low Processing Rate

The first way to know if you have the cheapest small business credit card processing is if you have a locked in low processing rate. Getting a flat rate that’s locked in might seem hard with most processors for small businesses. They get really sketchy during discussions when you talk about rates. They say that the market changes and they have to be able to pass rising costs to you. That’s bologna.

You deserve a locked in rate for your business, and you can get it. You just have to find the right payment processor.

#2- No Annual Contracts

To get the cheapest small business credit card processing you need to not be locked into an annual contract. Most credit card companies for small business owners will lock you into a 3 or 4-year contract. Be sure to ask yourself why they’re making you sign a contract here. If they have to make you sign an annual contract, what are they hiding? Are businesses leaving them and they have to force you to stay around? This is just a bad sign, so no contracts for your business.

The honest processors will give you a month to month contract which you can terminate at any point without a cancelation fee or termination fee. The great ones will let you cancel your contract without an exit clause payment. Be on the lookout for that as well. You shouldn’t have to pay to leave your processor if they’re acting up.

Dual Payments also won’t hit you with any monthly minimums fees if you don’t hit a certain sales volume a month.

#3- Sign up for Cost-plus Pricing

To have the cheapest credit card processing for small business, you need to sign up for Cost-plus pricing. Cost-plus pricing, or interchangeplus pricing, is the most transparent and straightforward type of cheap credit card processing for small business. Most credit card companies will give you a percentage you’re paying for all card transactions. How do you know if that percentage is any good?

Any percentage you’re quoted is only as good as what that percentage actually means. For most credit card processors, the rate you’re being told applies to all cards equally. This may sound like a good thing, but it’s not.

For example. Let’s say you’re being quoted a rate of 1.57%. Sounds great, right? 99 times out of 100 that rate that you’re being quoted only applies to qualified cards. What is a qualified card?

A qualified credit card is basically a card with no rewards due to the customer. That’s no airline miles, cash back, hotel points or gas credits. So, how many “qualified” cards do you process? Not that many.

For every other card that’s not qualified, they’re charging you a different percentage. When it turns out that you’re processing only about 15% “qualified” cards, trouble ensues. You notice that you’re not getting 1.57% on your bill. It works out to closer to 4% when you do the math. How does that work?

When you process anything other than a “qualified” card, you’re getting a different rate. That is where card companies make their substantial markup. Most business owners don’t even bother to look, and they’re paying way more than they need to.

Cost-plus pricing means you’re paying fees that look like this:

  1. Whatever the credit card companies like Visa, American Express and Mastercard charge for each card. Doesn’t matter if they’re qualified, mid-qualified, non-qualified…You pay what Visa and Mastercard charge to be accepting credit card payments made on that card. No more no less.
  1. You add a very small fee that goes to the processing company. That small fee keeps them in business and you save a bundle.

#4- Work With a Free Credit Card Processing Company

For the cheapest small business credit card processing, you need to work with a credit card processing company that has totally free credit card processing. What is totally free processing? It’s just that. It’s free.

How can processing credit cards be free, right? There’s no merchant services company on the planet that will let your business accept credit and debit cards without a fee, right?

Probably not. Even credit card processing companies need to make money to keep their kids in piano lessons. What really great processing companies can do is help your customers pay your processing fees.

Dual Payments has a totally free, zero fee processing payment solutions that you should check out. With the zero fee credit card processing solution, the customer is made aware that there will be an additional fee to pay for this transaction with a credit card. It’s not on a sign on the counter or on a recorded voice over the smooth jazz ceiling system. It’s presented on the terminal at the point of sale.

Customers are informed that if they want to make the purchase with a credit card that there will be a convenience fee added to their sale. They decide if they want to pay with a credit card and if so, a minimal percentage is added to the sale. This small percentage takes card of the fees paid to the Card Issuers and the Payment Processing Company.

Your fees at the end of the month end up being $0.00

Companies that have their credit card payment processed for free will see a significant growth in their monthly revenue. For as long as you would stay with Dual Payments, there is no recurring bill due from you. Instead, we get our recurring payments through the fee from the customer.

If you currently pay $1,200 per month in credit card processing fees, next month = $0.00

If you currently pay $5,700 per month in credit card processing fees, next month = $0.00

Many small retail businesses choose to accept payments with Square payments. However, the fees associated with Square are quite high and can be a turn off for many businesses.

#5- Do Not Sign Up for Bundled Pricing

The last way to have a cheap credit and debit card processing option for small business is by not signing up for bundled pricing. If you are talking with a company that has anything called “bundled pricing” just walk away. This is a term that’s used to hide percentages and rates from the end business user. This is just a bad idea.

Take some time and discuss Cost-plus pricing with your merchant services provider. If they’re not willing to do Cost-plus pricing with your business, it’s time to find another provider like Dual Payments.

Other processors like Sams Club Merchant Services, Chase Merchant Solutions or Intuit Quickbooks Payments Services have more complicated pricing models. However, their main complaints tend to be their higher fees.

Cheapest Small Business Credit Card Processing: What is the Next Step?

To ensure the cheapest credit card processing for small business, ask us the hard questions above and we’ll tell you the same answers that were written here. No funny business, no high-pressure sales tactics. We offer low rates and great customer service with no strings attached.

Come and put us to the test. There’s no catch with Dual Payments. Our contracts are month to month, so if you try us and don’t like us, simply cancel and you’re done. There’s no risk to your business.

If you’re an online store or an online business that is looking for an online credit card processing company, shift can also help with that. We can provide a virtual terminal or payment gateway that is capable of processing online payment, still at zero fees to the business owner and help transport your company to an ecommerce business.

The POS software you get will be the one that you feel is right for your business. It will, at the bare minimum, contain credit card readers or a credit card machine that will allow you to process payments in-store through a physical card or mobile card like Apple Pay, depending on the payment systems that your business chooses.

Many POS systems come with additional features, however, like accounting software or shopping cart software.

We would love to earn your business by showing you how a company working to “Dual Payments” the national processing industry can act.

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Example of High Risk Merchants

  • 1-900 Phone companies – If you’re the type of company that charges people to have a chat on the phone, you’ll be considered high risk.
  • Adult Bookstores – Clearly a part of the adult entertainment industry, and an easy mark for the high risk tag.
  • Adult Entertainment – Any business labeled with the “adult” descriptor will automatically be assigned a high risk status.
  • Adult Toys – As “adult” is in the name, it’s an easy target for association with the adult entertainment market.
  • Airline Industry – Due to cancellations on high ticket purchases, this will put your airline company in the high risk category
  • Amazon Stores – By having a high rate of return, Amazon stores are seen as high risk.
  • Ammo Sales – Association with the weapons industry guarantees high risk status.
  • Annual Contracts – Any time an annual contract is involved it can be considered highrisk because most consumers forget they signed up and chance of chargeback can be high.
  • Antiques – With a high average ticket per item, antiques are considered a risky merchant type.
  • Astrology – The study of the celestial bodies and the influence on human affairs can be a chargeback target if customers feel like they aren’t getting the answers they want.
  • Auctions – Because of the nature of bidding on a product and not having a set price the risk level goes up.
  • Autographed Collectables – There is almost always a question as to whether an autograph is authentic, and therefore chargebacks are much higher in this industry.
  • Automotive Brokers – Brokers of automobiles have a very high average ticket are are therefore of higher risk.
  • Bankruptcy Attorneys – Since the people who are working with bankruptcy attorneys are usually in financial trouble, the odds that a payment would be charged back is higher.
  • Betting Services – In many states betting is illegal but for the legal states betting with a credit card has huge chargeback implications.
  • Brokering – When a third party is involved with selling a product the risk level goes up ten fold.
  • Business Loans (Merchant Cash Advances) – Loaning money is always risky, but with business loans and startup lending, high risk is present by the nature of the business.
  • Casino – Just like a betting service, if a customer gambles with their credit card the chargeback rate sky rockets.
  • CBD Products – CBD itself poses high chargebacks because of the legitimacy of the product and the health benefits promised.
  • CBD E commerce – CBD E Commerce has twice the charge back of retail CBD because many consumers don’t feel like the product they receive gives them the benefits promised.
  • Check Cashing (Check Processing) – The level of fraud in check cashing and cash advances is what gives this industry a higher risk consideration.
  • Cigarettes – With higher levels of risk for theft and criminal activity, cigarette sales are deemed high risk.
  • Collection Agencies (Collection Agency) – Many banks see collections as an unsustainable business model that is many times unreliable.
  • Collectible Coins – A higher level of chargeback in this industry gives it a high risk tag.
  • Collectible Currency – Due to the level of inauthentic collectibles, the risk of chargebacks are much higher with collectibles.
  • Copyrighted eBooks – When someone sells something copyrighted without permission many legal issues can arise.
  • Coupon Programs – With many coupon programs the coupons expire and once they expire the consumer wants the money back they spend.
  • Credit Counseling – Due to their clients usually being in financial problems, this industry is fraught with non-payment and fraud.
  • Credit Protection – Most people that need credit protection are bad with money so chargebacks abound.
  • Credit Repair – If a consumer needs credit repair then chances are they are a high risk for chargebacks.
  • Currency Sales – Many businesses that exchange currency do it at incorrect rates hence more chargebacks.
  • Dating Services – Dating is a volatile industry, and is also lumped in with the adult entertainment industry, making it a high risk account.
  • Debt Collection Services – As the collection of debt isn’t always possible, this industry retains the tag of risky.
  • Debt Consolidation Services (Debt Consolidators) – Consolidating debt is a challenging business and as debt is usually the problem, it’s seen as unsecure from a payment perspective.
  • Debt Repair Services – Since the clients of debt repair services are usually having financial challenges, it makes this industry seem a higher risk.
  • Discount Health Programs – Many people don’t feel they are really getting a discount so they try to get their money back and if they don’t the chargebacks sky rocket.
  • Discount Medical Care Programs – Just like the discount health programs if they don’t save the consumer wants their money back.
  • Drug Paraphernalia – Anything that is associated with the drug trade is considered high risk. Offshore merchant accounts are commonly used for this type of business.
  • E Commerce – As the source of the payment is unverifiable at the point of sale, any transaction without the card present has a higher risk of credit card fraud.
  • Ebay Stores – Many people sell items that aren’t as described so chargebacks can be an issue.
  • Electronic cigarettes – much like traditional cigarettes, e-cigarette sales are also deemed high risk.
  • Electronics – This industry has a much higher ticket compared with many other businesses. A chargeback for a $3,000 tv or two and your account can be in jeopardy rather quickly.
  • Escort Services – This is deemed a part of the adult entertainment industry and therefore needs a high risk merchant account and payment solution.
  • Event Ticket Brokers – If a customer buys a ticket and doesn’t use it they feel like they can charge the transaction back.
  • Extended Warranty Companies – Warranties are rarely used so people try to charge back the money that has been spent paying for them.
  • Federal Firearms License Dealers – Any organization associated with guns or firearms is automatically considered in this category.
  • Fantasy Sports Websites – Just like gambling, if a person starts to lose too often they try and charge back the transaction.
  • Finance Brokers – The entire financing industry is risky. By simply extending credit to other individuals, this business is betting that a majority of them will actually pay what they say they will.
  • Financial Advising/Consulting – The high risk tag on financial advisors isn’t about the advisors or their firm. It’s about the clientele and their current circumstances.
  • Financial Loan Modification Services – Due to a clientele in financial struggles, the high risk term is applied to any payments in this industry.
  • Financial Planning – Anything that includes risk for the consumer can have consumer implications with chargebacks.
  • Financial Strategy – Another risk and reward category, if money is lost, consumers try charging back making this a high risk industry.
  • Fortune Tellers – When a person doesn’t hear what they want to hear, or what is told doesn’t happen, the fortune teller can receive huge chargebacks.
  • Furniture Sellers – High risk only when its custom furniture.
  • Gambling – If money is lost the chargebacks rise.
  • Gaming – Chargeback levels skyrocket when consumers don’t win.
  • Get Rich Quick Programs – It’s rather common in this industry for an individual to purchase the training and then chargeback their purchase saying it didn’t deliver on what was promised.
  • Google Stores – With a high rate of return on their items, Google stores are considered high risk.
  • Gun Sales (Firearm Sales) – The gun and projectile industry is automatically associated with high risk credit card processing.
  • High Average Ticket Sales – With any high average ticket, just a couple of chargebacks can mean a massive shift in how risky the account is deemed by the processor.
  • Home/Vacation Rentals – Many issues with chargebacks can take place if the consumer decides not to travel.
  • Horoscopes – Many people believe this is hocum so will chargeback transactions.
  • How To Programs – A common practice in this industry is to purchase the program and charge it back with the description that it didn’t deliver what it promised.
  • Hypnotists – Many merchants will charge back these transactions if results they hoped for were not met.
  • Import/Export Business – Another example of taking goods over country borders which automatically brings in additional risk to any processing account.
  • Indirect Financial Consulting – When using a third party to consult, the high risk status gives the processor fraud protection.
  • International Cargo – Any time you introduce a multi-country element to credit card processing, the ability for fraud to be introduced skyrockets.
  • International Merchants operating in the US – Since the merchant isn’t operating from the United States, there are many unknowns about what is happening on the other side of their business, thus increasing the risk.
  • International Shipping – Transporting goods between countries is risky and introduces all sorts of elements to the financial stability of any transaction.
  • Investment Books – consumers get upset if the investor isn’t right which can lead to chargebacks.
  • Investment Firms – As investments are never a “sure thing” this is considered a risky industry for having a merchant account.
  • Investment Strategy – Anything with future promises can lead to chargeback.
  • Knife Sales – weapons of any kind are automatically given high risk status.
  • Kratom E Commerce – Accepting payments online is high risk, and Kratom is a substance in the health and wellness industry, which is also considered high risk.
  • Life Coaching – With no tangible goods involved in the transaction, life coaching is considered high risk.
  • Lingerie Businesses – Associated with the adult entertainment industry, chargebacks abound.
  • Lotteries – In most states you can buy lottery tickets with a credit card but if you’re allowed to and the ticket is not a winner, consumers try to chargeback the transactions.
  • Magazine Sales – Many magazine sales are recurring subscriptions, which can have issues with chargebacks.
  • Magazine Subscriptions – Same as magazine sales chargebacks can be huge when a recurring subscription happens. (often referred to as recurring billing.)
  • Mail Order Companies – When something is ordered through the mail chargeback risk can go up.
  • Marijuana Dispensaries – As marijuana isn’t a legal substance in every state, this is considered high risk due to the legality of the product. Cannabis credit card processing is available through Shift Processing.
  • Matchmaking Services – Another branch of the dating tree, and often associated with the adult entertainment industry.
  • Medical Devices – If a medical device doesn’t do what’s promised the purchaser may chargeback the transaction.
  • Membership Organizations – This is another instance of where the transactions don’t have any tangible product and are easily charged back to the merchant account.
  • Merchants on the MATCH list – If you are a merchant who has been reported to the MATCH list (Member Alert to Control High Risk Merchants) or the TMF (Terminated Merchant File) you are given high risk status.
  • Merchants with Poor Credit – Merchant accounts are given based on the credit score of the business owner. It’s assumed that the business owner is going to be making the financial decisions for the business, and a poor credit score reflects on the viability of any business transactions.
  • Modeling Agencies – At many agencies models are promised the world and it doesn’t happen. The consumer then wants their money back.
  • Movie Downloads – Transference of a digital product is considered of higher risk. Also, rarely is a physical card present at time of purchase.
  • Multilevel Marketing Sales – Often associated with pyramid schemes, MLM sales are considered a risky business.
  • Music Downloads – Purchasing any digital product is considered to be of higher risk than a physical transaction. Most of the time the card is not present in a digital transaction using a shopping cart.
  • Not A US Citizen Doing Business In The US – It’s possible to get a merchant account without a US social security number, but not having a SSN will increase the risk the processor will have in issuing a merchant account for your business.
  • Online Adult Membership Sites – If you’re running a website that is adult themed and requires payment for access, this is a highly volatile account and definitely high risk.
  • Offshore Corporations (Offshore Merchants) – The international element is what gives the high risk tag when looking for domestic merchant accounts.
  • Online Gambling (Online Gaming) – Without a card being present and gambling as the activity, there are two reasons why this would be on this list. Online payment alone is risky even without the gambling element.
  • Overseas Exporting Services – The introduction of the international element is what gains access to this list.
  • Pawn Shops – There’s a general stigma that goes along with pawn shops, and it’s reflected in their assignment to the high risk processors list.
  • Penny Auction Sites – Even though the customers are usually bidding at only a penny more per bid, users will commonly charge back the transaction when they don’t win.
  • Pepper Spray – Considered a type of weapon, pepper spray vendors are considered risky.
  • Points Programs – Points programs that cost money can cause chargeback issues if points are not used.
  • Pornographic Merchants – If you’re a part of the adult entertainment industry in any way, you’re considered high risk.
  • Precious Metals – Counterfeit metals can be a problem in this industry, making it more risky to accept payments for.
  • Prepaid Calling Cards – Anything prepaid that a consumer may not use increases chargeback issues.
  • Prepaid Debit Cards – When they expire or are lost consumers want their money back.
  • Psychic Services – “Honey, did you visit a psychic? No babe, I don’t remember visiting a psychic.” I’ll just reverse that charge then.
  • Real Estate – A common target for scams and identity theft is how real estate makes this list.
  • Replica Products (Watches, Handbags, Wallets, Sunglasses, Etc…) – As the product being sold isn’t authentic to the original manufacturer, the percentage of requests for refund is much higher than a traditional merchant.
  • Rewards Programs – If rewards are not spent, the consumer wants the money back.
  • Self-Defense – Since the payment provided is for instruction and not a physical product, the self-defense industry makes this list.
  • Self-Hypnosis Services – Yet another instance where the goods being transferred are of a service and not a physical product.
  • SEO Services – With a high rate of request for refund, SEO agencies make this list.
  • Social Networking Sites – Just like a dating site, if a consumer does not get what they want from it, they always like to chargeback.
  • Software Downloads – The software industry makes their way on to this list because of the digital nature of the goods being sold.
  • Sports Forecasting – An example of paying for information and not for a product, and usually not in person where the card would be present for the transaction.
  • Startups – Every startup is considered risky, and the percentage of startups that make it is quite small compared to the number that fail.
  • Student Loans – With the cost of a college education continually on the rise, so is the percentage of loans that default and never receive payment.
  • Strip Clubs – Associated with the adult entertainment industry gains the strip club access to this list.
  • Stun Gun Sales – considered a type of weapon, which makes it a high risk merchant.
  • Supplement Sales – The request for refund in this industry is quite high due to the nature of the product.
  • Sweepstakes – “Hey, I entered a sweepstake and I didn’t win. I’d like my money back please.”
  • Talent Agencies – “I paid thousands of dollars for headshots and glamorous outfits and I haven’t gotten any paid gigs. Pay me back my money please.”
  • Telemarketing Services – Telemarketing services many times do not have the results the purchaser would like to see, so the services are charged back.
  • Telephone Order Sales – Anything ordered over the phone has a increased risk of chargeback.
  • Timeshare Companies – When timeshares aren’t used, people want their money back.
  • Travel Agencies – If trips are not taken, consumers would like their funds returned.
  • Travel Clubs – Many travel club discounts aren’t what they were promised, increasing risk for chargebacks.
  • Vacation Rental Brokers – Third party brokers on prepaid vacation can have issues when customers cancel their trips.
  • Vape Shops – The level of criminal activity and theft is higher with vape shop merchants and therefore carries a high risk label.
  • Vitamin Sales – If the vitamins don’t provide the results the merchant would like to see they chargeback the transactions.
  • Web Designer – Because this service is prone to chargebacks, it has been classified as high risk.
  • Weight Loss – Considered risky because the results aren’t really up to the company, but rather the individual has to stick to the plan to get results, often resulting in chargebacks.
  • Yahoo Stores – Since the goods sold through Yahoo can easily be returned, they are considered a risky merchant.

Turn Your Residuals into Immediate Cash Today

Selling your residuals doesn’t impact your merchants—they’ll keep processing happily. So, if you need extra funds, explore a credit card residual buyout. It’s fast, easy, and a smart move for your financial game plan.