Credit card is a great facility, but sometimes it can be risky, if you don’t use it smartly, sincerely. Generally credit card users make some mistakes like they withdraw cash money from their credit cards, in this situation credit card companies charge heavy and regular interest on cash withdrawal.
As much as 3% may appear, the credit card companies and competing services (Authorize.net,Intuit, Square, Paypal and Venmo to name a few) are very good at what they do. This is not where you want to supply your differentiator. If you have products or services that enable sales, then let the money people make their fee and you make your money on the product or service. We will see the transaction fees come down over time, but this is not your competitive advantage.
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I'm in the process of starting a website where people can sign up and create their own "stores" to sell their items.
Now it seems to me that the majority of credit card companies charge around 3% for this, with an additional $0.30 per transaction on top of that (roughly). Is there some kind of service that I am overlooking to avoid such high fees? We were only planning on charging customers 3% for OUR services, let alone the credit card fees. I have a hard time believe a site like Etsy is paying a credit card processing company 3% per sale. Any tips?