Many organizations have to deal with the problem of paying credit card fees. It is very difficult for companies in this current day and age to get by as a cash only operation, but many small businesses have been hampered by the growing fees that they must pay every time they swipe a credit card. In many cases, this has led companies to only allow credit payments if the transaction is over a certain dollar amount, like $10 or $15.
This has also led many businesses to start considering the use of mobile and cloud-based POS systems because they have a lower cost of doing business. It is also causing many organizations that offer these solutions to change the way they operate.
A recent article from Fast Company profiled Shopify, a mobile application that turns tablets into a working cash register. With a piece of hardware, businesses can accept credit cards. This is a competitive marketplace and other companies like Square hold a large market share.
To remain competitive, Shopify has kept its transaction fees low and this week dropped them to between 2.15 percent and 2.7 percent with on fees, depending on subscription – which ranges between $49 to $199 per month. Previously, merchants need to pay 2.1 percent to 2.5 percent and a 30-cent charge per swipe.
"This is saving merchants hundreds, if not thousands, of dollars a month," Shopify vice president of product Adam McNamara told the news source.
This shows how important swipe fees are when it comes to merchants picking a credit card processor.