There are 5 facts that you may not know about credit card processing merchant services! It can be a little mind blowing when you consider that businesses have only been relying on credit card processing merchant services for about 30 years. Up until the 1980’s commerce was largely a cash only industry. While credit cards had been around in various forms since the 1950’s they were not largely issued, and accepted as payment until the 1970’s and did not really become a “preferred method” until the 1980’s.
The Facts
There are 5 facts that you should know about credit card processing and merchant services to get the most out of the services:
- Credit card processing fees are tax deductible and can be a sizable deduction.
- You can pass the fees on to the consumer, whether you should or not is a different topic.
- Your local bank is likely not the best source for credit card processing, the fees can be higher because they do not do the processing, they outsource it!
- The TMF file is something you never want your business name on.
- Not taking your customers address for orders when they are not present can be costly!
You can save a nice chunk of change by claiming credit card processing fees on your taxes. If you are not, you should be. You can legally pass the fees on to the consumer, but you probably shouldn’t it is a service that consumers expect you to foot the bill for. Roll the projected cost into your inventory. Your local bank is not typically the most affordable source for credit card processing. Most local banks do not do their own processing, they outsource it, you absorb the costs in a higher fee structure. Protect your business by being diligent when accepting credit cards about getting all the information that you need to prevent fraud.
American Merchant is a good source for your processing and services.
