Are Generally Banks Charging An Excessive Amount for Credit Payment Processing?

Payment processing with your bank

Obtaining your credit and debit card payments processed with your bank seems like the normal, Simple thing to do, also, since you have your organization bank account using your bank you often just assume that taking your payment processing solutions from them will be just as effortless.

Banks charging an excessive amount for payment processing

This often means needing to buy a retail credit card machine and have it all associated with your merchant account through the bank in order to process your debit and credit card payments. This might be costly and time intensive, and you hardly ever really get a good amount of customer services from your bank merchant account simply because banking is their primary game, not credit card processing.
Rates

According to the British Retail Consortium (BRC), banks have been guilty of overcharging firms for the ability to accept credit cards and debit cards. Banks have recently increased their charges for accepting debit cards and these charges have almost doubled over the last five years.

The BRC have correctly recognized that right now, when a retailer accepts credit cards and debit cards for payment of goods and services they end up paying out four times as much in prices as they do when they take cash!

The main fear for retailers right now is that banks could continue to charge preposterous costs for the new contactless technology among others that are soon to take over our consumer experience. The customer will almost certainly want to use this technology, but the retailer will not be able to help it with prices standing at the price they do at the moment.

* Cash processing stands at 2.1p per transaction.
* The average debit card fee 8.5p
* The average credit card fee is currently 33p.

Alternatives

The banks should not be allowed to make a fortune at the expense of the firms who have their merchant account with them. Just because cheques are being abolished and cash purchases are very gradually decreasing, it doesn't mean that banks can continue to charge over-the-top costs for firms to take card payments; it should mean precisely the reverse.

If something should happen, due to the rise in different payment methods, banks should be lowering fees to support more businesses; particularly smaller ones. Banks could make an incredible profit whilst satisfying their responsibility and enabling the small to medium sized organization to prosper (companies that so often fail because of this type of thing). Surely it is going to be in the banks' best interests to accumulate a steady growth of organization customers than to make a fast, substantial profit and put people out of business.

The only real other possible choice would be to go with an 3rd party payment processing company that offers the complete merchant account services, including card machines, technical support, online guidance, and continuously low processing rates. Banks are going to lose a lot of companies to these unbiased corporations if they don't change their ways.

Faye Hartman is a professional copywriter working for PaymentSense, the UK's fastest growing Merchant Service Provider. For more information about how to "accept credit" cards visit the PaymentSense website

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