But First, What Are Merchant Fees?
Merchant fees are charges that businesses pay to their payment processor or merchant services provider for handling transactions made via credit or debit cards. These fees typically cover the costs of processing payments, including interchange fees from card brands (like Visa or Mastercard), transaction costs for the technology used, and any associated service fees from the merchant provider. Merchant fees can vary depending on factors such as transaction volume, card type, and the terms of your agreement with the provider. Understanding these fees is crucial for managing costs and maintaining profitability in your business.
What Are Transaction Fees?
Transaction fees are a fee charged for each payment processed. It is typically a percentage of the transaction amount plus a fixed fee per transaction. Conventionally, transaction rates are between 1.5%-3.5% but have been known to reach heights of 6% per transaction, additionally, the fixed fee is typically around 20p per transaction. this might not sound like a lot, but when these charges are added onto every transaction, it will add up fast. Typically, these fees won’t change mid-contract, however the merchant provider does have the ability to do so.
Luckily for your pockets, BMS can offer transaction rates as low as 0.30%! Plus, our average fixed fee is 4p, saving you money that can be re-invested back into your business.
What Are Terminal Rental Charges?
What Are Interchange Fees?
Overall, we understand that managing merchant provider fees can feel overwhelming, especially with the possibility of fluctuating costs. That’s why understanding the different types of merchant provider fees is essential in empowering you to make informed decisions about your merchant services. At Bespoke Merchant Solutions, we believe in giving you greater freedom with your finances, through transparency, fairness, and most importantly, low transaction rates and terminal rate discounts.
