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  • Writer's pictureElevation Blinds

Why Credit Card Processing Fees Matter: A Guide

Updated: Jul 2, 2023


Credit card processing fees are a cost for businesses that accept credit card payments. However, as a customer, it's important to understand why these fees matter and how they impact the overall cost of products and services.


What are credit card processing fees?


When you use a credit card for your purchase, the credit card company charges the business a processing fee, which can range from 2-5% of the total transaction amount.

This means that the business is paying the credit card companies for both you and them.


Why do businesses charge credit card processing fees?


Businesses charge credit card processing fees to help mitigate the impact of these fees on their bottom line. When margins are already tight - home improvement and furniture businesses have margins ranging from 20-40%,


To help mitigate the impact of credit card processing fees on their business, businesses can incentivize cash or check payments, as they have no fee for these methods of payment. This means that if you choose to pay with cash or check, you save money on your purchase.


Why is it important for businesses to operate sustainably?


It's important for businesses to operate sustainably to ensure that they can continue to provide high-quality products and services to their customers. Charging credit card processing fees is one way that businesses can operate sustainably and ensure that they can continue to offer competitive prices.


Home improvement and furniture businesses have margins ranging from 20-40%. This means how much they profit. For example, if a business sells a product for $1,000, they may pay $600 for the product to make $400. That $400 does not include taxes or employee pay and other operating expenses.


In conclusion, credit card processing fees are a necessary cost for businesses that accept credit card payments.


However, businesses can mitigate the impact of these fees on their customers by incentivizing cash or check payments and being transparent about why credit card processing fees are necessary. Why make the credit card companies rich when both you and us can save money using cash or check?


By operating sustainably and offering competitive prices, businesses can continue to provide high-quality products and services to their customers.

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