Credit Card Companies make money in a variety of ways. Here are the four most common:

 

One: The most common way credit card companies make money is through fees, such as the annual fee, overlimit fee and past due fees.

 

Two: Another way credit card companies make money is through interest on revolving loans if the card balance is not paid in full each month.

 

Three: As explained above, the card issuer (the bank that issued the card and/or the issuer network, be it Visa, MasterCard, Discover) makes a percentage of each item you purchase from a merchant who accepts your credit card. The rates range from 1% to 6% for each purchase.

 

Four: The card issuer can also make money through ancillary avenues, such as selling your name to a mailing list or selling advertisements along with your monthly billing statement.

 

 

 

 

What Are Merchant Services?

 

If you have merchant service status, you can accept credit card payments from your customers. Merchant services may be offered by your bank or by specialized merchant service providers or independent sales organizations that offer payment processing. If you go through a merchant service provider rather than a financial institution, you may have the ability to buy or lease your credit card processing equipment, establish both a merchant account and an Internet Merchant account, take a wide range of credit and debit cards, and offer a wide range of other services such as telephone and mail services and mobile services.

 

 

 

 

Why choose Brad Franzen for your merchant services?
 

Brad Franzen acknowledges that the world is moving further away from paper and is going towards mobile and electronic. Businesses that are keen on maintaining the traditional cash-only policies will not only fall behind their competition, but will also fail to meet their customers’ expectations. By choosing Brad Franzen for your credit card processing provider, you have the guarantee that:
 

    You will get an user-friendly card payment processing solution
    Our systems meet the highest standards for payment security
    Our solutions are PCI SSD compliant and protect customer sensitive data
    You can reduce labor costs and time thanks to our integrated payment with accounting solutions
    You will have a simple and efficient tool to help you with business resource planning