When your business is engaged in ecommerce, you’ll come across hidden fees that may take away from your business’s overall profit. It’s important to understand what these fees are, especially when using an ecommerce credit card processing system, to help your business run as smoothly as possible for both you and your valued customers.
An online shopping cart for credit card processing is the payment gateway for your business’s products online. When your customer goes to purchase items on your website, virtual credit card processing takes place using the processing platform you’ve chosen. Note that in ecommerce, your payment gateway handles the automated checkout flow, while a virtual terminal allows you to manually process orders taken over the phone or by mail.
The hidden fees that may show up on your bill can include a PCI compliance fee, transaction fee, and processing fee. Understanding these charges will help you read your monthly statement without any confusion or frustration.
Ecommerce credit card processing fees
PCI compliance fee
PCI stands for Payment Card Industry. If your business accepts any form of card or check payments, whether it be online using a virtual terminal for credit card processing or using a credit card terminal at your business’s location, you must adhere to the latest PCI DSS v4.0.1 standards. Some merchant processors will charge a PCI compliance fee. Many traditional processors still list a “PCI compliance fee” as a hidden cost. At Stax, we believe security is a standard, not an upsell, which is why we don’t charge separate monthly compliance fees.
Transaction fee
Whenever you swipe a credit card or when account information is input into your virtual credit card terminal or online shopping cart, this is called a transaction. You’ll be charged for every transaction that occurs. This fee varies by merchant processor, and you’ll be charged a flat fee per transaction to cover the direct cost of the network. Meanwhile, Stax eliminates the percentage-based markup that traditional processors hide in your rate. It’s important to note that no matter which processor you have, you’ll always be charged a transaction fee. The key is understanding the charges associated per transaction because you don’t want to have this eat away at your profits if the rate is too high for your business. You should look into a variety of merchant processors that will provide a virtual terminal platform that fits your business according to the number of transactions you have per month.
Check the processing fee
If you choose a virtual terminal credit card processing system that allows you to accept ACH (bank transfer) payments, then you may be charged an ACH processing fee. Similar to the transaction fee, you’ll be charged per bank transfer that needs to be verified. This is also an important fee to understand because although you’re probably not going to have as many transfers to process, these charges can begin to add up without you even realizing it. Note that if you accept ACH payments, look out for potential “return fees” if a bank transfer is unsuccessful.
Final words
When using a virtual terminal for all of your business’s payment processing, it’s vital to understand all the hidden fees that may appear on your company’s merchant processing bill to ensure a high-profit margin.
With Stax, you can accept online payments as well as traditional payments using a credit card machine without hidden fees. Ready to focus more on your business’s success rather than your merchant bill? We will be glad to answer any questions you may have and help you make use of our best-in-class merchant services right away.
FAQs about credit card processing fee
Q: What are the hidden fees in ecommerce credit card processing?
Hidden e-commerce credit card processing fees can include charges like the PCI compliance fee, transaction fee, and ACH processing fee. These costs can show up on your bill during your business operations.
Q: What is a PCI compliance fee?
PCI stands for Payment Card Industry, and any business that accepts card or check payments must adhere to the latest PCI DSS v4.0.1 standards. Some merchant processors will charge a PCI Compliance fee, which is really only acceptable if the processor provides resources and tools to help you with PCI compliance.
Q: What is the transaction fee in ecommerce credit card processing?
Swiping a credit card or input account information into your virtual credit card terminal or online shopping cart is termed a transaction. Merchants are charged for every transaction, varying by merchant processor in terms of the percentage and dollar amount per transaction.
Q: What does an ACH processing fee signify?
When using a credit card processing system that allows you to accept ACH (bank transfer) payments, you may encounter an ACH processing fee. Similar to a transaction fee, it is charged for every check that requires verification.
Q: What are the key considerations when choosing a merchant processor?
Understanding the charges associated with every transaction is essential. Choose a merchant processor that provides a platform that suits your business needs and transaction volume.
Q: Are there any ecommerce platforms that never charge a PCI compliance fee?
Yes, platforms like Stax never charge a PCI compliance fee, offering a transparent pricing model.
Q: How will understanding these fees impact my online business?
Comprehending these charges helps you to read your monthly merchant processing statement without confusion or frustration, ensuring you maintain a competitive edge and high profit margin.
Q: Are the transaction fee and check fee charged together?
An ACH (check) fee replaces the credit card transaction fee for that specific sale, though it often comes with a separate “verification fee” to ensure the account is valid.
Q: How can I keep my business’s profit margins high while accepting card payments?
Understanding and managing the hidden fees in ecommerce credit card processing ensures your business maintains a high profit margin. Reviewing these charges regularly is essential to avoid any undue drain on your profits.
Q: What are some recommendations for ecommerce credit card processing services?
Some notable ecommerce credit card processing services include Stax and Payment Depot, among others, each with unique offerings and pricing models.
