In the world of credit card processing how do the resellers make money? All of the companies that contact me say they can beat everyones prices. How?
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The Credit Card processors have a base rate and fee. The resellers sign up businesses at a rate and fee that are higher than the base and receive the difference.
The fee is for the transaction. The rate is a percentage of the transaction amount. If the base fee is $0.25 and the reseller signs them up at $0.35, then the reseller makes $0.10 on every transaction. If the CC places a 0.05% fee and the reseller signs them at 0.07%, then they will receive $0.02 for every dollar spent in the transactions.
There are also other commissions from the processor companies for the card readers and sometimes a one time commission for signing up.
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