What does a merchant service do?

Welcome, curious minds! If you’ve ever wondered about the wizards behind the scenes who make your card transactions seamless, you’re in the right place. Today, we’re diving into the enchanting world of merchant services, shedding light on the magic that makes your purchases possible. So, grab your wands (or credit cards) as we embark on this educational journey!

Chapter 1: The Merchant Service Spellbook

Imagine you stroll into your favorite local store, pick up a few items, and head to the checkout. As you gracefully swipe or insert your card, a mysterious process begins. Enter the world of the merchant service spellbook – a collection of tools and technologies that ensures the seamless and secure exchange of funds between you and the merchant.

Chapter 2: The Magic Potion – Payment Processing

At the heart of every merchant service is the magic potion known as payment processing. This potion works behind the scenes to transform your card information into a currency spell that zips through the digital realm to reach your bank and the merchant’s coffers. The result? A successful transaction, leaving you with your goodies and the merchant with a smile.

Chapter 3: Local Wizards for Superior Spells

Now, here’s a little secret: not all wizards are created equal. When it comes to merchant services, working with local providers is like having a wizard who knows your name and the perfect spell to make your shopping experience magical. Local providers offer personalized attention, quicker response times, and a deeper understanding of the unique enchantments needed for your community.

Chapter 4: The Importance of Customer Service Charms

In the grand tapestry of merchant services, customer service charms are like the golden thread that weaves everything together. Local providers, deeply rooted in your community, understand the power of these charms. Need assistance? Have a question about a transaction? A local provider is just a hop, skip, and jump away, ready to unravel the mysteries and cast away any doubts.

Chapter 5: The Future of Merchant Services – A Crystal Ball Peek

As we gaze into our crystal ball, the future of merchant services holds exciting possibilities. From contactless spells to biometric enchantments, the world of payments is evolving. Local providers, deeply connected to the pulse of their communities, will play a pivotal role in shaping this magical landscape.


Join the Merchant Service Adventure! And there you have it – the captivating tale of merchant services, where technology and magic intertwine to make your transactions a breeze. As you navigate the enchanted realm of payments, consider partnering with local wizards for an experience that’s not only seamless but also filled with the warmth of community.

So, fellow adventurers, the next time you embark on a shopping quest, remember the magic behind the scenes and the local wizards who make it all possible. May your transactions be swift, your purchases delightful, and your merchant service experience truly enchanting!

For additional questions, please don’t hesitate to reach out to the experts at Flat Creek Payments. Even if you’re not processing with us, we’re happy to help you navigate this crazy well of payment processing.

What is the average rate for credit card processing?

Hey there, savvy business owners! If you’re in the game of making money (and who isn’t?), you’ve probably danced with the idea of accepting credit card payments. But, before you dive into the financial tango, you’re likely wondering, “What is the average rate for credit card processing?” Well, buckle up because we’re about to demystify the credit card processing conundrum and why you might want to think twice before swaying with the flat rate providers like Square and Stripe.

Chapter 1: The Dance Floor – Understanding Credit Card Processing Rates

Picture this: your business is a bustling dance floor, and each transaction is a move in the financial dance. Credit card processing rates are like the rhythm of the music, influencing how smoothly your transactions flow. On average, credit card processing rates range from 1.5% to 3.5%, but the devil is in the details. These rates are comprised of interchange fees, assessments, and processor markup – each playing a unique role in the financial symphony.

Chapter 2: The Masked Dancer – Flat Rate Pricing

Enter the masked dancer: flat rate pricing. Companies like Square and Stripe boast simplicity with their flat rates – a one-size-fits-all approach to credit card processing. At first glance, it seems like a sweet deal. But beware! Behind the mask lies a potential pitfall for your business.

Flat rate pricing simplifies the dance, but simplicity comes at a cost. With a flat rate, you’re charged the same percentage for every transaction, regardless of the type of card used. So, whether it’s a basic debit card or a premium rewards card, you pay the same rate. The problem? You might end up paying more than you should, especially if your customers love to swipe those premium cards.

Chapter 3: The Tango of Transparency – Interchange Plus Pricing

Now, let’s introduce a dance partner that might be a better fit for your business – Interchange Plus Pricing. This approach embraces transparency and fairness, allowing you to see the actual cost of processing each transaction.

With Interchange Plus Pricing, you pay the interchange fee set by the card networks (Visa, Mastercard, etc.) plus a small markup from your processor. This way, you’re not overcharged for premium card transactions, and the dance becomes a budget-friendly waltz rather than a financial cha-cha.

Chapter 4: The Encore – Educated Decision-Making

As you navigate the dance floor of credit card processing, keep your eyes wide open and your feet nimble. While the allure of flat rate pricing may seem enticing, it’s crucial to consider the unique needs and spending habits of your customers.

Educate yourself about the intricacies of credit card processing rates and opt for a partner that offers transparency and fairness. Interchange Plus Pricing might not be as flashy as the flat rate, but it ensures you’re not caught in a financial salsa with hidden fees.

So, what is the average rate for credit card processing? It’s a range, a spectrum, a dance floor of financial possibilities. As a business owner, your goal is to choose the dance style that best fits your rhythm. While flat rate pricing may have its charms, don’t be fooled by the mask – go for transparency, go for Interchange Plus Pricing or Dual-Pricing, and waltz your way to financial success!

For more information, please reach out to one of our experts at Flat Creek Payments. Even if you’re not processing with us, we’re happy to help you navigate this crazy world of payment processing!

Can I create my own payment gateway?

In the vast realm of e-commerce and digital transactions, the heartbeat of every business is its payment gateway. It’s the virtual pathway where money changes hands, making it a crucial component for any online enterprise. Understandably, entrepreneurs often ponder the possibility of creating their own payment gateway. The allure of autonomy and cost-efficiency is certainly tempting. But before you embark on this technological adventure, let’s explore whether DIY is the way to go and why trusting established merchant service providers might be the wiser choice.

The DIY Dream: Can You Create Your Own Payment Gateway?

The short answer is, well, technically possible. With the right technical expertise and resources, building a payment gateway from scratch is within the realm of possibility. It involves coding, compliance with stringent security standards (like PCI DSS), establishing connections with banks, and providing a seamless user experience. While the challenge might seem thrilling, here are some critical factors to consider before diving headfirst into this venture:

1. Expertise and Resources: Crafting a payment gateway demands expertise in various domains such as coding, security protocols, compliance, and financial regulations. Without a team well-versed in these areas, the endeavor can become a Herculean task.

2. Security and Compliance: Payment gateways handle sensitive financial data. Meeting the rigorous security standards to protect this information is paramount. Failing to comply can lead to severe repercussions and loss of customer trust.

3. Reliability and Maintenance: Ensuring 24/7 uptime and addressing any glitches or security breaches promptly is a significant responsibility. It’s not just about setting it up; it’s about maintaining and continually updating it.

4. Integration and User Experience: Seamlessly integrating with various platforms and providing a smooth, intuitive user experience is critical. Any friction in the payment process can lead to lost sales and dissatisfied customers.

Why Trusting Established Merchant Service Providers Is Key

While the DIY approach might seem thrilling, partnering with established merchant service providers offers several distinct advantages:

1. Expertise and Infrastructure: Established providers have the necessary expertise, experience, and resources. They’ve spent years perfecting their systems, ensuring they meet industry standards and offer top-notch security.

2. Trust and Reliability: Using reputable payment gateways means leveraging established trust and reliability. Customers are more likely to trust well-known payment methods, enhancing their confidence in your business.

3. Compliance and Support: Reputable providers adhere to strict industry regulations and standards. Moreover, they offer ongoing support, ensuring that your payment system remains compliant and functional.

4. Scalability and Innovation: Established providers often offer scalable solutions that can grow with your business. They continuously innovate, integrating new technologies and features to improve the payment experience.

The Verdict: Proceed with Caution

In conclusion, while the idea of creating your own payment gateway might seem enticing, it’s a path riddled with challenges and potential pitfalls. For most businesses, especially startups and small enterprises, entrusting this crucial aspect to established merchant service providers is the more pragmatic and secure choice.

Choosing a reliable payment gateway is like laying a sturdy foundation for your business. Prioritize security, reliability, and user experience by partnering with trusted providers who have already paved the way in the complex world of digital transactions. After all, while DIY can be an exhilarating journey, some paths are best left to the experts.

Our team of experts at Flat Creek Payments is happy to help you navigate the world of payment processing… even if you’re not processing with us! Protecting business owners is what we do best.

Do I need a merchant account for my business?

Picture this: You’re a budding entrepreneur with a fantastic business idea, and you’re ready to start selling your products or services to the world. You’ve got your business plan, a catchy name, and a website ready to roll. But wait, there’s a crucial question on your mind – do you need a merchant account for your business? In this blog post, we’re going to embark on a fun journey to uncover the answer to this common entrepreneurial conundrum.

The Merchant Account Mystery

First things first, what is a merchant account? A merchant account is like a backstage pass for your business to enter the world of electronic payments. It’s essentially a specialized bank account that allows you to accept credit card and debit card payments from your customers.

Now, let’s dive into some clues to help you solve the mystery of whether or not you need a merchant account for your business.

Clue 1: Cash Is So Last Century

In a world where convenience and speed are paramount, cash is beginning to feel a bit like a dinosaur. Shoppers are increasingly reaching for their plastic friends – credit and debit cards – to make purchases, and in some cases, they’re even going entirely digital with mobile wallets and online payment platforms. If your business plans to cater to modern consumers, you’ll need to offer them the payment options they prefer.

Clue 2: E-commerce Ambitions

If your business is primarily online, having a merchant account is like having an online storefront with a “we accept credit cards” sign in the window. It gives you the ability to process online payments securely, which is essential for building trust with your customers. After all, would you trust a website that only accepts cash on delivery?

Clue 3: In-Person Sales

Even if your business operates in the physical world, having a merchant account can make the payment process smoother and more efficient. Imagine the convenience of accepting card payments at a trade show, food truck, or farmers’ market. With a portable card reader, you won’t have to worry about keeping heaps of cash or making change for customers.

Clue 4: Cashing in on Impulse Buyers

Do you sell products or services that tend to be impulse purchases? Think about those snazzy sunglasses at the checkout counter or the delicious-smelling candles near the exit. Having the ability to accept card payments can help you capitalize on these impulse buys and boost your sales.

Clue 5: International Aspirations

If your business has global aspirations, a merchant account can be a game-changer. It allows you to accept payments from customers around the world in various currencies, opening up a world of opportunities beyond your local market.

This about sums it up…

So, do you need a merchant account for your business? The answer ultimately depends on your business model, your target audience, and your long-term goals. But if your business wants to keep up with the fast-paced world of electronic payments, provide convenient payment options for your customers, and be ready for growth, a merchant account is an investment worth considering.

In today’s digital age, cash may still be king in some scenarios, but cards are the crown prince, and a merchant account can be your golden ticket to the kingdom of modern commerce. So, whether you’re selling handmade crafts, gourmet cupcakes, or the latest tech gadgets, having a merchant account can make your business transactions smoother, faster, and more appealing to your customers. Time to let the cash-register dust settle and embrace the wonders of plastic and pixels!

If you have additional questions, feel free to reach out to the experts at Flat Creek Payments. Even if you’re not processing with them, they’re happy to help you navigate this crazy world of payment processing!

Understanding Merchant Services for Small Businesses

In today’s digital age, small businesses need to adapt and embrace modern payment processing methods to thrive in a competitive market. Merchant services play a crucial role in facilitating these payment transactions. But what exactly are merchant services for small businesses, and how can they benefit your company? In this blog post, we’ll explore the fundamentals of merchant services and their importance for small business owners.

What Are Merchant Services?

Merchant services encompass a range of financial services and solutions designed to assist businesses in accepting electronic payments from their customers. These services are essential for businesses of all sizes, including small enterprises, as they allow for the processing of debit and credit card transactions, as well as other electronic payment methods like mobile wallets and online payments.

Key Components of Merchant Services

  1. Payment Processing: Payment processing is the heart of merchant services. Small businesses need to have the ability to securely and efficiently process credit card and debit card payments. This typically involves hardware, software, and secure payment gateways.
  2. Point-of-Sale (POS) Systems: Merchant services often include POS systems that help businesses streamline their sales processes. These systems not only enable payment processing but also track inventory, manage sales data, and generate reports for better decision-making.
  3. Payment Gateway: A payment gateway is a secure platform that authorizes and processes credit card transactions. It acts as the bridge between the merchant’s website or POS system and the customer’s bank to ensure secure and seamless transactions.
  4. Merchant Accounts: Small businesses require merchant accounts to accept credit and debit card payments. These accounts are where funds from card transactions are temporarily held before being transferred to the business owner’s bank account.
  5. Virtual Terminals: For online and card-not-present transactions, virtual terminals allow businesses to manually enter card information for processing, enabling e-commerce and phone orders.
  6. Mobile Payment Solutions: As mobile payment methods become increasingly popular, merchant services providers offer solutions that allow small businesses to accept payments via smartphones and tablets.

Why Are Merchant Services Important for Small Businesses?

  1. Increased Sales: By offering a variety of payment options, small businesses can cater to a broader customer base. Customers often prefer using credit cards or digital wallets for convenience, and accepting these methods can lead to increased sales and revenue.
  2. Enhanced Security: Merchant services providers invest heavily in security to protect both businesses and customers. They employ encryption and fraud prevention measures to ensure secure transactions.
  3. Streamlined Operations: Merchant services provide small businesses with tools like POS systems and payment gateways, which streamline operations, track sales data, and help manage inventory efficiently.
  4. Improved Customer Experience: Providing convenient and secure payment options enhances the overall shopping experience for customers, leading to higher customer satisfaction and loyalty.
  5. Better Reporting and Analytics: Merchant services often come with reporting and analytics tools that enable small businesses to analyze sales data and make informed decisions to optimize their operations and marketing efforts.

Merchant services for small businesses are essential tools that enable secure, efficient, and diverse payment processing methods. By utilizing these services, small business owners can not only increase their sales and revenue but also enhance their operational efficiency and provide a better experience for their customers. In today’s competitive marketplace, embracing merchant services is a smart investment that can contribute to the long-term success of any small business.

For additional questions, please reach out to our team of experts at Flat Creek Payments. Even if you’re not processing with us, we’re here to help you navigate this crazy world of payment processing!

What are card swipers called?

In today’s digital age, card swipers have become a ubiquitous tool for processing payments and transactions. Whether you’re making a purchase at a retail store, dining at a restaurant, or using public transportation, you’ve likely encountered these devices. But have you ever wondered what these card swipers are called? In this blog post, we’ll explore the various terms used to describe these essential devices and their functions.

  1. Magnetic Stripe Reader (MSR)

One of the most common names for card swipers is the Magnetic Stripe Reader (MSR). These devices work by reading the information encoded on the magnetic stripe found on the back of credit and debit cards. This stripe contains essential data such as the cardholder’s account number, expiration date, and other relevant information. MSR technology has been in use for decades and remains an integral part of card payment systems.

  1. Card Reader

The term “card reader” is a broad and generic way to describe these devices. It encompasses various types of card-swiping technologies, including MSR, EMV chip card readers, and contactless card readers. In everyday conversation, people often use “card reader” as a catch-all phrase for any tool that processes card payments.

  1. Swipe Machine

In some regions, card swipers are colloquially referred to as “swipe machines.” This term is derived from the act of physically swiping a card through the reader to initiate a transaction. Swipe machines are commonly found in small businesses and older point-of-sale systems that still rely on magnetic stripe technology.

  1. Chip and PIN Machine

As technology advances, the EMV (Europay, MasterCard, and Visa) chip has become the new standard for card payments. Consequently, card swipers have evolved to accommodate this technology. Devices that read chip cards are often called “Chip and PIN machines” because they require the cardholder to insert the card’s chip and enter a Personal Identification Number (PIN) for added security.

  1. Contactless Payment Terminal

With the rise of contactless payments, card swipers have adapted to accept near-field communication (NFC) technology. Contactless payment terminals allow cardholders to make transactions by simply tapping or waving their cards or smartphones near the reader. While not commonly referred to as card swipers, these devices are part of the broader family of payment terminals.

  1. Card Terminal

“Card terminal” is another term used to describe the devices used for card payments. This name is more neutral and encompasses all the different card-swiping methods available today, making it a suitable term for discussing payment processing equipment in general.

In conclusion, card swipers can be called by various names depending on their specific functionality or the region in which they are used. Whether it’s a Magnetic Stripe Reader (MSR), a Chip and PIN machine, a contactless payment terminal, or simply a card reader, these devices play a crucial role in facilitating secure and convenient transactions. As payment technology continues to evolve, we can expect new names and terms to emerge, but the core purpose of these devices remains the same – to simplify the way we make payments and conduct transactions in our increasingly digital world.

For additional information, please don’t hesitate to reach our experts at Flat Creek Payments. Even if you’re not processing with us, we’re happy to help you navigate this crazy world of payment processing!

Is PayPal a merchant service?

When it comes to payment processing for your business, the options are seemingly endless. One of the most popular choices is PayPal. It’s widely used by individuals and businesses alike, but is it the right choice for your business? In this blog post, we’ll explore the question, “Is PayPal a merchant service?” and dive into some reasons why you might want to think twice before using PayPal for your business.

Is PayPal a Merchant Service?

The short answer is no, PayPal is not a traditional merchant service provider. A merchant service, or merchant account, is a financial service offered by banks and payment processors that allows businesses to accept credit card payments. Instead, PayPal operates as a third-party payment processor, or what’s known as a payment aggregator. They act as an intermediary between buyers and sellers, handling the transaction process.

While PayPal may not be a merchant service in the traditional sense, it has become a popular choice for many businesses. However, there are some important reasons why you might want to reconsider using PayPal for your business.

  1. High Fees

One of the most significant downsides to using PayPal for business is the fees. PayPal charges a processing fee for each transaction, which can range from 2.9% to 4.4% of the transaction amount, depending on your business’s sales volume. On top of that, they add a fixed fee per transaction, typically around $0.30.

These fees can quickly add up, especially for businesses with high transaction volumes. Traditional merchant service providers may offer more competitive rates and transparency in their fee structures.

  1. Limited Customer Support

PayPal’s customer support is notorious for being less than stellar. It can be challenging to get timely and helpful assistance when you encounter issues with your account or transactions. In contrast, many traditional merchant service providers offer dedicated account managers and 24/7 support to ensure your business runs smoothly.

  1. Account Freezes and Holds

PayPal has a history of freezing accounts or placing holds on funds for various reasons, including sudden spikes in sales or perceived security concerns. While these measures may be necessary to prevent fraud, they can be incredibly frustrating for businesses, causing disruptions in cash flow.

  1. Lack of Customization

If you want your payment processing to be seamlessly integrated into your website or application, PayPal might not be the best choice. It has limited customization options, and customers are often redirected to the PayPal website to complete their transactions, which can be off-putting for some.

  1. Limited International Reach

If your business operates internationally, you may find PayPal’s currency conversion rates and international transaction fees to be less favorable than those of other payment processors. Additionally, some countries have restrictions on PayPal, limiting its use for cross-border transactions.

So, What’s the Alternative?

While PayPal may be suitable for small businesses or individuals just starting out, larger businesses looking for more flexibility, lower fees, and better customer support may want to consider traditional merchant service providers. These providers offer tailored solutions for businesses, including custom payment gateways and competitive pricing.

Local providers are often more invested in the success of businesses within their community. They can offer a level of personalized support that larger, international companies like PayPal simply can’t match.

With a local provider, you can establish a direct relationship with your account manager, who will be familiar with your business’s unique needs. This accessibility and hands-on approach can make problem-solving and addressing any concerns or issues a much more straightforward and efficient process.

Additionally, local providers may offer competitive rates and flexibility tailored to your specific industry or market, further enhancing the value of choosing them as your payment processing partner.

By supporting local businesses, you’re not just improving your payment processing experience; you’re also contributing to the growth and well-being of your local community.


In summary, while PayPal is a convenient and widely recognized payment processing solution, it may not be the best choice for all businesses, especially those looking for competitive pricing, top-notch customer support, and custom integration options. While PayPal is not a traditional merchant service, there are alternative providers that offer more tailored solutions. It’s essential to weigh the pros and cons and carefully consider your business’s specific requirements before deciding on a payment processing solution.

For more information, please feel free to reach out to one of our experts at Flat Creek Payments. Even if you’re not processing with us, we’re happy to help you navigate this crazy world of payment processing.

What falls under merchant services?

Hey there, savvy shoppers, enthusiastic entrepreneurs, and curious consumers! Today, we’re about to embark on a thrilling journey into the mystical world of “Merchant Services.” Ever wondered what exactly falls under this enigmatic umbrella term? Well, grab your magnifying glass and Sherlock Holmes’ hat because we’re about to uncover the secrets of this fascinating realm!

Chapter 1: Setting the Stage

Merchant services, my dear readers, are the unsung heroes of the shopping universe. They’re the backstage crew that make every purchase, be it online or in-store, a seamless experience. Think of them as the wizards behind the curtain, ensuring that your transactions are as swift and secure as possible.

Chapter 2: Card Payments – The Classic Act

Our first act centers around the dazzling world of card payments. From swiping plastic at your local coffee shop to online shopping sprees, this is where merchant services shine the brightest. Credit card processing, debit card transactions, and those mysterious “card-not-present” payments for online shopping – all fall under this category. Merchant services make sure your money is safe, your transaction is smooth, and your coffee fix is served up piping hot!

Chapter 3: Mobile Wallets – The New Kids on the Block

Now, let’s take a leap into the future with the stars of the show – mobile wallets! You’ve probably heard of Apple Pay, Google Pay, and Samsung Pay, right? Well, guess what? They are also part of the mesmerizing world of merchant services. These nifty digital wallets allow you to leave your physical wallet at home and simply tap your phone to make payments. Who knew merchant services could be so tech-savvy?

Chapter 4: E-Commerce Magic

“Abra-cadabra” and presto, your favorite items are at your doorstep! The magic of e-commerce is supported by none other than merchant services. These behind-the-scenes heroes ensure that your online shopping cart and your bank account communicate flawlessly, preventing any hiccups in your retail therapy sessions. Whether you’re shopping for a fancy new dress or the latest gadgets, merchant services keep the online shopping experience spellbinding.

Chapter 5: Gift Cards and Loyalty Programs – The True Hidden Gems

Our next act features the unsung heroes of the shopping world – gift cards and loyalty programs. Did you know that merchant services also manage these? They’re responsible for processing gift card purchases and tracking your loyalty points, transforming your shopping experience into a game where you’re the winner.

Chapter 6: Security – The Protective Spell

Last but certainly not least, we have the guardians of the realm – security measures! Merchant services cast a protective spell on your personal information and hard-earned money. They ensure that your data is encrypted and that your transactions are as secure as a dragon guarding its treasure.

Chapter 7: The Grand Finale

And there you have it, folks! Merchant services, often operating behind the scenes, are the real stars of the shopping world. From card payments to mobile wallets, e-commerce to gift cards, and security, these services ensure that your retail adventures are safe, swift, and oh-so-magical.

So, the next time you make a purchase, remember the enchanting world of merchant services working tirelessly to make your shopping dreams come true. They truly are the unsung heroes of the shopping universe, making each transaction a memorable and worry-free experience. Now, go out there and shop with the confidence that you know what’s really going on behind the scenes – a little bit of magic we like to call “merchant services.”

For more information, schedule a free consultation with one of our experts at Flat Creek Payments.

The Credit Card with the Highest Processing Fee: A Look into Premium Cards


When it comes to credit cards, most people focus on rewards, perks, and interest rates. However, one lesser-known aspect of credit cards is the processing fee that merchants have to pay when accepting payments. These fees are typically charged to businesses by credit card companies for each transaction. While these fees vary widely, there is no single “credit card with the highest processing fee” as it depends on multiple factors. In this blog post, we will explore the factors that influence processing fees and look at some credit cards that may have higher fees due to their premium status.

Understanding Credit Card Processing Fees

Credit card processing fees are composed of several elements, including interchange fees, assessment fees, and the processor’s markup. Interchange fees are set by the card networks (Visa, Mastercard, etc.) and are consistent for all cards within the same network. Assessment fees are the fees charged by the card networks themselves. The processor’s markup is the part of the fee that varies from one payment processor to another.

Factors That Affect Processing Fees

The processing fee a merchant pays for each transaction can vary due to several factors:

  1. Card Type: Different types of credit cards come with varying processing fees. Premium and reward credit cards tend to have higher processing fees than standard credit cards. These premium cards often offer lucrative rewards, and the cost is offset by higher fees charged to merchants.
  2. Merchant Category: Credit card processing fees can differ based on the type of business. Merchants are categorized into industries, and the rates may vary depending on the level of risk associated with each industry.
  3. Payment Processor: The company that handles credit card transactions for the merchant can have its own pricing structure. Some processors may charge higher fees, while others may offer more competitive rates.
  4. Transaction Volume: High-volume businesses often have the ability to negotiate lower processing fees due to their higher transaction volume. Smaller businesses may face higher fees.

Credit Cards with Potentially High Processing Fees

While it’s not accurate to point to a single credit card as having the highest processing fee, premium credit cards are known to have higher fees due to their rewards and perks. Examples of such premium credit cards include:

  1. The Platinum Card® from American Express: This card offers extensive travel benefits and premium perks, and it may result in higher processing fees for merchants.
  2. Chase Sapphire Reserve: Another premium card with substantial travel rewards, and, as a result, it may have higher processing fees for merchants.
  3. The Black Card by Luxury Card: This card is known for its exclusive perks and is considered a premium card, which may lead to higher processing fees.

It’s essential to remember that these cards are designed for consumers and do not directly dictate processing fees. The processing fees are determined by the credit card network (Visa, Mastercard, etc.) and the payment processor used by the merchant.


The processing fee associated with credit card transactions varies depending on various factors, including the card type, the merchant category, the payment processor, and the transaction volume. While premium credit cards often have higher processing fees due to the benefits they provide, it is the card networks and payment processors that ultimately set the rates. Merchants should carefully consider these factors when choosing credit card processing services and be aware that premium cardholders may carry higher processing fees for their business.

For additional questions, speak to the experts at Flat Creek Payments. Even if you’re not processing with them, they’re happy to help you navigate the world of payments.

CLICK HERE to schedule a quick call!

Can you pass credit card fees to consumers?

Yes, it is possible to pass credit card fees to consumers. In the United States, merchants have the right to charge customers a fee for using a credit card as a form of payment, as long as the fee is clearly disclosed to the customer and does not exceed the cost of processing the credit card.

However, it is important to note that there are certain states and industries where surcharging is prohibited, so it is important to be familiar with the laws in your area before deciding to pass on the fees to customers.

NOTE – Surcharging is different than offering a cash discount. Cash discount is legal in all 50 states.

Additionally, it is also important to consider the potential impact on customer satisfaction and the overall reputation of your business. Many business owners are making the tough choice, but consumers seem to be understanding and on their next visit they just bring cash to pay a lower price for your product/service.

At the end of the day, you as the business owner have to do what’s best for your business. Really weigh out the pros and cons. From a financial standpoint, offering a cash discount is the best option. Costs are increasing all around us and unfortunately it’s forcing some businesses to close their doors.

Consider this… either your customer pays a little extra fee or you pay a lot of extra fees. Believe in yourself! You’ve worked hard to provide an excellent product/service and your customers will remain loyal.

Still have questions?

Email us: info@flatcreekpayments.com