The 4 Sneakiest Fees From Business Credit Card Accounts

A business credit card account can be a great asset for any business owner. It allows a business to make necessary purchases without affecting the overall cash flow. A business credit card account also allows a business to accept credit cards seamlessly. But a business account can have hidden credit card fees. Knowing what some of these fees are can help you plan for the necessary ones, and avoid unnecessary ones altogether.

Transaction Fees

On top of paying monthly fees for the business processing accounts, many processing companies also charge fees for credit card transactions as well. Most often there is a minimum of transactions that need to be met each month in order to avoid this fee. The kicker is these minimums have to be met for each type of card that is accepted. So, for example, even if you meet your minimum for MasterCard transactions but only take a handful of payments with American Express and Discover, you will have to pay those transaction fees for both of those card types. You can avoid these fees by finding a credit card processing company that offers packages without minimums.

Credit Card Convenience Fees

Many businesses now charge convenience fees, and credit card companies are no different. Simply calling to make a payment on your credit card account can trigger a convenience fee. If the credit card company traditionally accepts payments through the mail, then using another payment method is considered a convenience to their customers. These fees can be as high as $10 per payment. Merchant processing accounts are no different. If you need to call customer service for an issue that can be resolved online, you could face one of these convenience fees. Be sure you understand exactly what they charge convenience fees for, and how often, before you sign any contract.

Equipment Rental Fees


For merchants who don't already have the necessary equipment to accept credit cards, many credit card processing companies will offer to rent or lease the equipment to you. While paying a small amount of money over several months may seem like a good option, you can expect to pay twice what the equipment is worth in the long run. On top of the equipment rental, you will also likely pay a maintenance fee. This fee is supposed to cover any repair that the equipment or the line may need. You can avoid these fees by purchasing your own equipment. You can find great deals on used equipment all the time. The maintenance fee may still be required, but you can still save some money by not purchasing or leasing the equipment directly from the company.

Advance Fees

When you sign a contract for credit card processing services, the terms will be clearly defined. Some companies will batch the money to you every day, some every week, and others will only batch every month. Even though the money is there and it's yours, if you need it before the official batch date, they may charge you a fee to advance your own money to you. If you run your business on a tight budget you want to make sure you find a processing service that will send the money directly to your business account at least weekly.

 

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