Now that the economy is rebounding, and a greater sense of security has hit the markets, we are seeing startups on the rise again. In the world of new businesses, achieving success is a goal that can be fleeting and often hard to realize let alone evaluate. Too often owners, anxious to take their product or service to market, turn to payment processing options that are easy to get going, but in the end can be costly and prohibitive. Having the ability to charge and receive payments promptly, accurately, and efficiently and maintaining a steady cash flow is crucial to the survival of your new business. Rather than jumping to the quick fix, take a few minutes to research options and partner with a company that can provide a variety of payment solutions, simplified for ease of use and convenient in order to appeal to all of your customers. Being able to collect on your receivables, manage your business and capitalize on your revenue are important factors in the success of your new endeavor.
For those who are yet unaware, interchange fees, or fees that get added on to merchant processing costs, have been a hot-button topic for quite some time. Interchange is a fee that is assessed by the card networks, and is the largest component of a merchant’s card processing costs (for more information, read our post: What Exactly are Interchange Fees, and Why Should I Care?). While many countries have taken on this issue and succeeded in ridding their area of many of these overly inflated fees, America has consistently remained behind the curve in terms of this matter. With that said, the following is an overview of the matter of interchange fees, why they remain so much higher in America, and they have often been the subject of complaints and lawsuits.