When it comes to merchant accounts for salon credit card processing, it’s not always easy to grasp what a service agreement includes and what each fee covers. In your quest to find the right solution for your beauty business, here is a breakdown of four merchant processors that market to the salon and spa industry.
To learn more about any of these fees, junk or otherwise, go here.
Once you get the basics of credit card processing and understand the players and fees associated with each, it’s easier to secure the best possible rate for your situation.
Here’s a quick breakdown of the fees you should expect to pay and what to watch out for based on these scenarios:
Independent Beauty Professionals
If you’re an independent contractor, like a booth or suite renter, or you own a single operator salon, and you’re processing less than $10K a month, here’s your best option.
- Best Option: Standard Flat Rate
- Why: It’s simple and clean so that you can stay focused on your business
- Watch out for: high rates, changing fees, junk fees
- Suggested: 2.55% Standard flat rate + .10 per transaction
How it Translates for You:
$5,000 in sales (50 tickets at $100 each)
$ -137.50 in fees
$4,862.50 to you per month
Medium-Size Salons
For a salon averaging $40K month in processing, consider:
- Best Option: Interchange Plus
- Why: custom rate based on salon volume
- Watch out for: high rates, changing fees, junk fees
How it Translates for You:
Average Card Pass-through = 1.55%
+ Processing Rate = 0.90%
+ Per Transaction = $0.10 (Assumes 400 tickets of $100 each)
+ Monthly Fees (No Junk) = $24.95
Total Monthly Cost
Average Card Pass-through (1.55%) = $ 620 (1.55% x $40,000)
+ Processing Rate (0.90%) = $ 360 (0.90% x $40,000)
+ Per Transaction ($0.10) = $ 40 ($0.10 x 400 tickets)
+ Monthly Fees (no Junk) = $ 24.95
Total Monthly Cost = $1,044.95
Monthly Processing Volume ($40K)
2.61% Effective Processing Rate
Larger Salons
For a salon averaging $80K month in processing, consider:
- Best Option: Interchange Plus
- Why: best custom rate based on higher salon volume
- Watch out for: high rates, changing fees, junk fees
How it Translates for You:
Average Card Pass-through = 1.55% (1.60% is the industry standard)
+ Processing Rate = 0.85%
+ Per Transaction = $0.10 (Assumes 640 tickets of $125 each)
+ Monthly Fees (No Junk) = $19.95
Total Monthly Cost
Average Card Pass-through (1.55%) = $1,240 (1.55% x $80,000)
+ Processing Rate (0.85%) = $ 680 (0.85% x $80,000)
+ Per Transaction ($0.10) = $ 64 ($0.10 x 640 tickets)
+ Monthly Fees (no Junk) = $ 19.95
Total Monthly Cost = $2,003.95
Monthly Processing Volume ($80K)
2.5% Effective Processing Rate
The scenarios above are examples only.
Regardless of your business size, RosyPay offers the best rates with no surprises down the road. The only payment processing solution designed solely for the beauty industry, RosyPay will beat your current payment processing rate. Ask us how!
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