Trade group offers credit card fee calculator

Trade group offers credit card fee calculator

The National Restaurant Association has just made calculating credit card processing fees for restaurateurs easier by offering a free credit card fee calculator. The fees associated with using credit cards in business -- interchange fees or credit card processing fees -- cover administrative and other costs for the credit card processing companies. These fees can deeply affect the profitability of small businesses with tight profit margins.

The National Restaurant Association has created this easy to use tool for restaurants seeking to understand the real cost of credit card processing. The card processing rate calculator can be found at the association's website KnowYourCardRates.com.

Rising interchange fees have been an ongoing concern for a number of small businesses across the country. The National Restaurant Association's proactive approach to helping restaurateurs understand how these costs affect their profits is a model for other industry associations. Credit card processing fees will be continuing to drain merchant resources until more small businesses understand how these costs affect their overhead.

The use of a card processing rate calculator is a proactive step other organizations can take to help their members understand interchange fees. According to the Federal Reserve, credit card processing fees can vary depending on the card merchant and the type of card. For example, Visa and MasterCard fees can range from 1.5 to 2 percent of the transaction value, but premium cards, such as gold cards, can be charged at a higher rate. Other merchants, such as fast food restaurants, may be charged additional fees. A merchant's sales volume also plays a role in the percentage charged. Restaurants and small businesses that understand how these fees affect their costs can better negotiate lower fees or adjust general operating costs to maximize their profitability.

Published: June 16,2023