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For small business owners, every dollar counts. You watch your inventory, labor, rent—and hopefully, your revenue. But one area many overlook? Credit card processing fees. Those small percentages taken with every swipe or tap can quietly drain your margins if you’re not paying attention.
The Hidden Cost of Every Transaction
Let’s say you run a café. A customer buys a $5 coffee and pays with a card. You get $4.85 after fees. That doesn’t sound bad. But if you serve 100 customers a day, that’s $15 lost daily. Multiply that over a month or a year, and you’re looking at thousands of dollars—money that could’ve gone toward staff, upgrades, or growth.
Flat Rate vs. Interchange Plus: Know the Difference
Most processors offer two pricing models:
- Flat rate: Simple. You pay one rate (say 2.9%) on all transactions. It’s predictable, but usually not the cheapest.
- Interchange plus: More transparent. You pay the actual bank fee (interchange) plus a small markup. It’s usually cheaper in the long run, especially as your volume grows.
A company like Merchant Service Depot focuses on interchange plus pricing—clear, honest, and built for businesses that want to save as they scale.
Don’t Lock Yourself Into Bad Contracts
Here’s a trap: processors who lure you in with low rates but lock you into long-term contracts with cancellation fees. If your processor is charging early termination fees or PCI compliance penalties, it’s time to reconsider. A good provider offers month-to-month service and full disclosure—no surprises, no fine print headaches.
How to Choose the Right Processor
Look for these signs of a solid processor:
- Transparent pricing (interchange plus preferred)
- No hidden fees or surprise charges
- No long-term contract or cancellation fee
- Real customer support—not just bots
- Equipment that works with your setup, not against it
Payment processing isn’t just a technical detail—it’s part of your business’s financial health. A few small changes can lead to big savings. If your current setup feels like a black box, it’s time to open the lid. Shop around, ask questions, and don’t settle for a bad deal.
Companies like Merchant Service Depot exist to make things simpler and fairer. And in business, the fair is profitable.
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