What is a 3% processing fee? Is there a way to avoid credit card processing fees?

The Basics of Credit and Debit Cards

Credit and debit cards are a popular way to pay for goods and services. When you use a credit or debit card, the card company pays the vendor for the purchase. Different vendors often mention this as an “interchange fee”, “swipe fee”, or “credit card processing fee”? But they all mean the same thing, the charge will appear on your statement as a “processing fee”.

What is the Average Credit Card Processing Fee?

Credit card processing fees are a charge that businesses can charge their customers for the service of processing their credit cards. These fees can range from a few cents to as much as 2–3% of the total amount processed.

When Can a Purchase Be Charged to a Credit or Debit Card?

When a purchase can be charged to a credit or debit card depends on the type of business and the individual credit or debit card company policies. Generally, most purchases can be charged to a card within two weeks of the purchase being made. However, there are some exceptions, such as pre-order items. In general, if you make a purchase and your customer does not have a charge on their account within two weeks, it is likely that the purchase will be charged to their credit or debit card.

What if the Cardholder Didn’t Know the Purchase Was Made with a Credit or Debit Card?

If the cardholder is unaware that the purchase was made with a credit or debit card, the merchant may be able to avoid a processing fee. There are a few different rules that apply to this situation, so it is important to speak with an experienced processor about your specific situation.

How to Avoid Credit Card Processing Fees?

There are a few ways to avoid credit card processing fees.

The Bottom Line

Yes, you can charge a credit card processing fee. However, it is important to note that this fee varies depending on the processor and the type of card being processed. Additionally, some processors offer discounts for larger transactions. To find out if a 3% processing fee is applicable to your business, contact your chosen processor. If you would like to avoid credit card processing fees altogether, consider using an online payment gateway.

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Helen Siswanto

Helen Siswanto

Don’t be surprised when stuff here is random. I just LOVE to write. Available for hire. www.helenthewordsmith.com