Point of Sale (POS) Glossary
Transaction fees are the charges that a business must pay for processing a customer’s electronic payment. When a buyer uses a credit or debit card at a point of sale terminal, a payment processor may charge a transaction percentage plus an additional fixed amount. These fees are not limited to POS terminals and must also be paid for online, phone, and mail purchases.
A per-transaction fee covers an acquirer and processor fees and generally are a few percentages of the purchase plus a set amount. Additional fees may apply, for instance, if a transaction is international and may also apply even if a transaction is rejected and does not go through. For this reason, plus concerns about fraud, merchants may offer a discount for cash.
Customers love promotions! Buyers are often pulled in by one deal and wind up buying regularly priced merchandise in addition to, or sometimes instead of your discounted items.
An eCommerce website is open 24/7 and accessible from all over the world. Being online and having physical store opens your business to a global market.