The thrill of a new merchant account can end after the first or second statement arrives and you find out that there are a variety of surcharges eroding your profit margins. A myriad of fixed charges and markups can nullify the impact of any good rates you negotiated for credit card processing services. If you’ve ever bought a car from a dealer, you know that the price you negotiate gets added in to financing costs, taxes, and other fees.
While most of the news surrounding surcharges involves ...Read More
Surcharges Eat Away At Your Profits
The thrill of a new merchant account can end after the first or second statement arrives and you find out that there are a variety of surcharges eroding your profit margins. A myriad of fixed charges and markups can nullify the impact of any good rates you negotiated for credit card processing services. If you’ve ever bought a car from a dealer, you know that the price you negotiate gets added in to financing costs, taxes, and other fees.
While most of the news surrounding surcharges involves ...Read More
Occasionally, people looking for credit card processing services inquire into offshore merchant accounts as a solution for difficulties in obtaining US-based merchant services. The main issue related to offshore credit card processing is that it is generally considered “high risk” and may involve significantly higher rates for authorization and other headaches for the merchant. Whenever possible, if you are doing business in the US and have a local (or nationwide) customer base, a domestic account 
As a form of alternative business funding, business cash advance services can be a lifesaver to a company with an established merchant account. They are also very convenient, since repayment is based around a percentage of you settled credit card receipts. This means that in slower months you aren’t on the hook for a fixed amount, and in high volume months you get closer to repaying the advance amount. Because advances are essentially a payment against your future credit card terminal revenue, 
Although it seems like an anachronism, check acceptance services are still popular among business owners. The trend toward electronic payments, automatic withdrawals, and payment card use has put a definite dent in the use of personal checks, but even the most tech-savvy individuals may find themselves breaking out the checkbook every now and then. On the business side, plenty of dot-matrix “impact” printers are still sold to companies that physically print out checks on the noisiest machine 
Credit card factoring, also called credit card laundering, happens when a third party asks your company to process credit cards on its behalf. While the other party may be willing to pay a high commission for the use of your merchant account, it is generally a good idea to take a pass on the offer. Credit card laundering is illegal in some states, and also forbidden by your merchant services contract. Furthermore, the penalties for factoring credit cards can result in a closed account and a permanent 
Some merchants are getting an unexpected surprise thanks to the some legislation passed in 2008. The Housing and Economic Recovery Act (HERA) and its subtitle the Housing Assistance Tax Act of 2008 contain a powerful withholding amendment that is just starting to affect merchants. Because a provision of the act (known as Section 6050W) was not made active until January first of this year, people may be seeing a 28% withholding penalty if the IRS does not have the correct information about your company.
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Looking to save money on credit card processing? When reviewing any merchant account offer, it pays to look at the total fee structure in addition to the rates charged on credit cards. Surcharges may be where your credit card processor makes most of its money. It should be noted that some fees are passed along from credit card associations like Visa, American Express, Discover and MasterCard, so not every fee is negotiable.
Here are some common fees and surcharges that you may find on your statement:
Annual 
Dental care can be expensive, and many procedures have limited coverage under dental insurance plans. To help their patients get the work they need, many dentists will use recommend specialized dental care financing. “Dental Care Cards” work just like regular credit cards, and are attached to a credit account specifically designed for dentistry patients.
Cards like CareCredit, which can also be used for other medical expenses, are often found at dentist’s offices. Similar to major brands 
If your company accepts credit cards, you are probably subject to one or more PCI requirements, and you may have noticed PCI compliance fees on your credit card statement. The Payment Card Industry (PCI) is a trade group that governs cardholder security, and its rules cover every step in the lifecycle of credit card acceptance. For the business owner, compliance is critical because (1) failure to comply could lead to extra fees and/or the loss of transaction processing privileges and (2) a data 
One of the biggest obstacles when it comes to switching credit card processing companies comes in the form of contracts and early termination fees. Because merchant services contracts are different from company to company, you may be able to seamlessly switch over to another processor with no problems. In other cases, you may want to get a more detailed analysis in order to be sure that you are getting the best deal.
At Capital Processing Network, just about every one of our new customers has