Online credit card payments have higher fees compared to in-person transactions due to the increased risk of fraud.

Here are the fees associated with online credit card payments:

• Interchange fee: Charged by credit card issuers like Visa and Mastercard, this fee ranges from 1.29% to 3.5% per transaction.
• Merchant Services Markup: These fees vary among providers and can influence your choice of payment processor.
• Assessment fees: Set fees collected by credit card networks, typically ranging from 0.13% to 0.16% per transaction.

Avoiding credit card fees entirely is not possible, but you can pass them on to your customers or explore alternative payment methods.

Add a convenience fee to online credit card payments

A convenience fee is an additional amount charged for transactions made online or by phone with a credit card.

• Visa: Flat fee
• Mastercard: Can be flat fee, percentage, or tiered
• American Express: Can be flat fee, percentage, or fixed

Pass fees to customers (credit surcharging)

Credit surcharging involves adding payment processing fees to the product or service cost at the point of sale. Ensure compliance with regulations and card network rules.

• Visa: Disclosure required prior to transaction
• Mastercard: Notification needed 30 days before implementation
• American Express: Does not allow credit card surcharges

Offer alternative payment methods (ACH/e-check payments)

Provide customers with alternative payment options like ACH transfers or e-checks to reduce credit card fees.

While you cannot avoid credit card fees, there are strategies to reduce them without passing the costs to customers.

Choosing a payment processor with competitive fees is key to minimizing costs. Consider providers like Helcim, Stripe, and CardX for low fee options.

Check for clear pricing structure and fee transparency

Opt for providers with transparent fee structures to understand where your money goes. Avoid tiered pricing models and look for flat fees or interchange-plus pricing.

Evaluate payment methods accepted

Choose a provider that offers a variety of payment methods to control fees. Ensure all payment methods are consolidated for easy management.

Evaluate security features and standards

Select PCI-compliant payment processors with fraud protection tools to prevent fraudulent transactions.

While free online credit card payments are not possible, selecting a payment processor with competitive fees and necessary features can reduce costs.

roosho Senior Engineer (Technical Services)

I am Rakib Raihan RooSho, Jack of all IT Trades. You got it right. Good for nothing. I try a lot of things and fail more than that. That's how I learn. Whenever I succeed, I note that in my cookbook. Eventually, that became my blog. 

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