Business Credit Cards – Know The Cost Associated With It
Regardless of the size of your business, credit cards are an important factor to maintain the flow of cash. In the digital age, credit cards are an important factor that determines whether your business will survive or not.
In addition, business credit cards provide you the ease of purchasing when your business is going through a cash crunch. During a pandemic, each and everyone in the society is affected by it and business owners are not out of it. In case you are looking for low credit card processing fees with easy payment options, you can find some of the credit card companies.
As per data, the usage of credit cards has grown up to 63% in 2020 which is more than double that of previous years. By 2020, people are more interested in contactless credit cards. However, before you apply for a credit card, you should know about the cost associated with it.
How much cost is associated with a credit card company
There are various sorts of fees associated with such business credit cards;
Setup fees: Depending upon the size of your business you may have to pay some setup fees. The processing company may also offer some setup fees for the processing of credit cards.
Interchange fees: When you carry out each transaction, there are some fees which the processor charges. Furthermore, it can range from 1% to 3%. In addition, if you make a purchase online you have to pay a 3% surcharge. Moreover, if you pay in person you have to pay 2%.
Monthly minimum fees: In case you are a small business owner and you do not meet the minimum monthly requirement to pay around $10 to $25, you have to cover the difference with monthly minimum fees
Monthly statement fees: Sometimes processing companies can charge a certain amount when you ask for a paper statement. Moreover, you must check with the processing company to send you the e-statement as an alternative.
Early termination fees: Check out with your processing company how much they levy cancellation fees if you terminate the contract. Moreover, sometimes it can amount to up to thousands of dollars. If you want to avoid the fee you can choose flexible month-to-month options. In addition, do not go for long-term contracts.
Checkout few factors before you apply
As per company policy, a few factors determine how much money will be charged after accepting credit card payments. Likewise, these factors are transaction amount, payment processing methods, pricing model, etc. Comparatively, some companies only charge the sales percentage whereas other processing companies charge sales percentage plus a flat rate.
If you are the owner of a small business that sells big-price products, in that case, you might get more benefit with flat-rate fees and sales percentage altogether. In case you are thinking of applying for the credit card and options about payment processing, you can ask companies to provide a sample bill. So, that you get an idea about the amount you will spend on monthly fees.
When you are looking for a business credit card you can go to various websites of the companies. Moreover, try to connect with various people who have previously used such credit cards and ask for their opinion on this matter.
In addition, check out the various terms and conditions of payment. Most of the companies offer interest rates every month and these companies are offering various pricing models based on their customer’s wishlist. Furthermore, most small business owners can check out the THD CBNA business credit cards to find out suitable options for their business.