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Merchant Is Charging 2% On Card – Due to technological advancements institutions have more methods to transact money. The card and card payment process is a convenient way to keep an eye on your finances and save your bank trips. So let us see what we could do if the merchant charges 2 percent extra.

What to do if the merchant charges 2 percent on card payments?

The merchant fee is charged by the service provider and the processor on each transaction. It is the main reason why merchant charges an extra amount on customers. If a customer decides to pay through a credit or debit card, then the merchant takes the merchant fee from the customer. The merchant searches for different ways to make money for himself. Paying by PayPal is a little different, as the charges are different. Merchants cut more charges on credit cards than on PayPal.

Pay for the item using a debit card:

Giving both the fee is not a good scenario for a merchant. Most merchants are not in the favor of charging this extra fee from the customer, but these merchants are basically big companies that have a turnover, and just for their popularity, they do not demand that 2 percent. Smaller businesses have nothing to do with popularity, so they charge these 2 percent extra charges when a customer buys their products using credit cards. They charge that 2 percent so that they could cover their business costs. It is a common practice that by law, the merchant is allowed to charge 5 to 10 dollars on debit or credit card transactions. 

Many websites on the internet sell their products online. Most of the small websites trick their customers by not displaying the price. In large-scale websites such as Amazon, Flipkart, eBay, Alibaba, and Ali express, provide a total price on their products. This total price is included with the price of the object as well as the total merchant charges. Delivery charges are not the same as they are applied after selecting all products.

The smaller websites that are in dire need of money do not mention the merchant charges with the object price, so you have to pay the merchant price too and end up buying the product at a higher price. So what steps should we take to avoid this? We can reduce these charges by using a debit card instead of a credit card for payments. Merchants charge lesser when we pay using debit cards. They charge 1 percent on debit cards and 2 percent on credit cards.

Use third-party payment routes:

Another alternative to avoid the extra 2 percent charges is to use third-party payment routes. These work just like Paypal, but they are considered third-party payment routes. Most merchants are versatile in their ways of receiving payments, so they offer several ways to accept payments. For your information, these small merchants are hungry for money to survive, so they keep many alternatives with themselves to receive cash so that they do not miss any chance. So as a result, you should use third-party payment routes. Some famous payment routes are PAYTM and BHIM.

Negotiate with the merchant:

Another technique to save yourself from the 2 percent extra charges imposed by the merchant is to negotiate with the merchant. If you have negotiation skills, then you do not need to worry about paying for the extra charges. If you are a noob and do not know anything about negotiation, try searching the internet for negotiation tips. You should negotiate for a discount on the price of the item you are buying. The negotiation should be done to such an extent that it covers the cost of 2 percent imposed by the merchant. Suppose you buy a pair of shoes for 20 dollars, and the surcharge over it is 5 dollars, so you will negotiate the price of those shoes to 15 dollars. As a result, you will cover both the item price and the surcharge imposed by the merchant.

Split payments:

If you think that negotiation is not your cup of tea, then you should discuss with your merchant and provide him with a solution. The solution is that you pay half of your money in cash and half of the money using the card. So when the merchant applies a deduction rate of 2 percent to that half of the money paid by card, it will save you some of those precious dollars.

Look for other merchants:

If you fail to do anything, you can change the merchant you are buying from. Large scale e-commerce markets such as eBay and Amazon have a lot of merchants registered with them. You must have noticed that most of the time there is a product which is sold by many other merchants too. There must be many merchants out there, and you should negotiate with everyone until you get the best price.

Browse other websites:

Moreover, you should not stick to just one website for a single product. You must have seen that there are multiple products from other merchants available on the website. You must also have observed that their prices are different although they are the same product. There are several reasons why these prices alter. Some of the reasons are that maybe the merchant wants to sell his products quickly, so he removed the 2 percent extra charges. So as a result, you should thoroughly check the website so that you can get the product for a cheaper price. Moreover, be aware and do not end up buying a cheap quality product.

Some merchants of an online website make a pact, and all agree on charging their customers a fixed surcharge on their items. But this is very uncommon. However, it best not to stick to only one website. There may be other websites providing the same product at a much cheaper surcharge price set by the merchants. Moreover, even if they do charge the surcharge, you can recover it if the other website provides free delivery.

Pay merchant directly using cash:

If you have no luck finding cheaper products, you should talk with one of the merchants and pay the money to him in cash. Now you might be wondering how will that be possible if he is in a different country. You can tell one of your friends or relative who lives nearby the merchant and pay him directly. After you pay the merchant, you can send the money to your friend or relative using the bank without any worries of paying 2 percent extra with the credit card.

A legal advantage for merchants:

Most of the time you really can not do anything as they are allowed to impose a surcharge on the products. The supreme court ruled in 2017 and decided to give merchants their rights by allowing them to impose a surcharge on their items. However, you do not need to worry as they are not allowed to charge more than 3 percent. Smaller countries where the companies are small and they require extra findings can not survive if customers keep on paying using credit cards. Owners of small businesses say that it becomes difficult to generate a profit if customers keep on paying using their credit cards.

What is the per-transaction fee charged by merchants?

A transaction fee is something that a merchant must pay to the service provider upon each transaction. The fee is not the same for every bank or city, as banks have different policies and cities have different tax rates, but the fee per transaction ranges from 0.5 percent to 1.5 percent. Its transaction fee not only includes the charges related to the processor fee but also the payments that are acquired by the bank.

 A merchant pairs up with the acquired bank. If a merchant receives a lot of payments, then the acquired bank along with the processor handles all the payments. For providing these services, banks and processors deduct their fee each time a transaction happens. 

Credit cards recommended by experts:

Visa and MasterCard: 

Often people consider that MasterCard and Visa are credit card providers, but they are not issuers rather they are payment processing corporations. Every time you swipe your card MasterCard, Visa is the one who processes the transaction. 

MasterCard and Visa are the ideal cards that should be used for purchasing purposes. They are beneficial when dealing with merchants who charge 2 percent extra charges. Usually, merchants charge less than 2 percent. So if you use MasterCard or visa, the merchants will not charge you 2 percent. If by chance, you are using the credit card of another company, then the merchants can charge up to more than 2 percent. Merchant charges vary from card to card. 

I’ll explain the difference in charges. So what happens is that visa and master cards are very common cards, and so they are used by almost every merchant for transaction purposes. Sometimes you have a credit card that is not very commonly used by the merchants, so the merchants charge more than 2 percent. It is because the merchants with a master card and Visa charge the merchants extra for accepting money from credit cards of another company. Ultimately he will charge the customer more so that he can compensate for the loss.

Many banks join the master card and visa

Many banks join the master card and visa. That’s why credit and debit cards have a logo on them. They license the banks that give them recognition in the market. Master cards and visas perform all the functions of processing, authorization, settlement, and fee deduction. They provide a means of communication between merchant and customer and introduce new products in the market .these are the largest payment network in the United States of America. 

Visa and MasterCard have very straightforward and easy-to-understand policies. They try their best to provide the ideal services and tax rates to their customers and merchants so that they can benefit from it. Moreover, they have branches in almost every city of every country of the world. They did this for a specific reason. Sometimes the merchants or customers face issues such as fraud or incorrect payment, these matters can not be solved online. As a result, they set up branches worldwide so that customers and merchants can interact with the members of the companies and resolve their issues instantly.

As per 2017 reports, visa card has a 50% credit card purchase and MasterCard has a 22% of purchase volume. These cards are widely accepted, and 200 countries are using these cards. With evolution, the card provides contactless payment services now. They have a strict security policy, so even if someone else is using your card as a fraud then the companies won’t charge you for it.



Expert alternatives for card payments:

In this new era, online transactions have become a part of her life e-commerce businesses have risen. Many banks have launched their online payment gateways, but the best in the USA are:

1. PayPal:

The most renowned online payment transaction company is PayPal. PayPal is known for its quick and secure process. It started its internet money transfer business in the USA, but it spread out quickly in the whole world. They have taken up the old ways of checks and physical transfer of money. They are the largest internet payment company that facilitates online payments. It is an acquirer, but now they provide service payment of online businesses and other commercial uses users. PayPal allows money transfer through credit cards, from bank accounts, and from even one PayPal account to another PayPal account.

It is a better alternative as it has no fee for making a PayPal account. Moreover, it is much safer than credit cards as the identity of a PayPal account can not be stolen. However, if a credit card is stolen, the thieve can easily use the credit card info for carrying out unauthorized transactions. Moreover, the transfer of payment is also slightly quicker.

2. Stripe:

Stripe is an app that provides numerous features like payment processing, corporate finance, etc.

It allows web developers to establish payment processing in their websites and apps. It also has many other functions. One of these functions is called the radar. It is used to help in blocking websites because these websites carry out fraudulent and unauthorized transactions.

Stripes are considered a great alternative to credit cards because they have extra features, and these features are used to manage bills and subscriptions. In the corporate world, they allow registering start-ups. It is also the platform for companies to issue master cards and visa credit cards.

3. Amazon pay:

You must have heard about Amazon Pay, but do you know what it is? Have you ever used it? Amazon Pay is a payment application owned by a mega e-commerce company, which is famously known as Amazon. Amazon provides credit cards to its customers. You will have to apply for these credit cards and pay a small registration amount to the company. Believe me; this card is worth the money. It helps people with transactions through their debit card credit cards that are saved in your Amazon account. It’s amazon where we can pay wherever we want to by using amazon pay. It saves a lot of time in which we use to fill in our card or account details.


Authorize .net is one of the oldest payment gateways. It processes card and cash payments for small and medium-sized merchants. It also provides fraud prevention and manages subscription bills. For web /app developers, it provides an application programming interface that helps in integrating payment options in apps and websites authorize. The net has a feature known as a virtual terminal that processes manual payments too.

5. Mobile payments:

Mobiles are available to almost every customer and merchant. Almost all banks have apps that are used by people for transactions in their daily lives. The mobile phone is a convention and the much quicker way if compared to card payments. Moreover, you can store the receipts in a digitized form so that they are not lost and can be provided in case the bank asks for it. Mobiles have higher security, and they prevent thieves from accessing their data.

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