Saving On Credit Card Processing Fees

When Yvonne Chu launched Kimera, her Brooklyn, N.Y.-based dress retailer, five years ago, setting up a system to accept her customers' credit cards was an afterthought. Already armed with a small business card from Capital One, she figured why not use the bank's credit card-processing services, too? "I needed it in a hurry," says Chu.

It took a few years, but Chu eventually realized she was leaving real money on the table. Today she uses New York-based Merchant Processing Services, which charges her a base rate of 1.61% on each bill, plus 20 cents per card swipe. That's down from roughly 2% and 23 cents at Capital One. Says Chu: "Every little bit counts."

Of all the demands of running a business, shopping for a competitive credit card processor might seem trivial. Yet a healthy dose of due diligence can go a long way.

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