Let's focus on a critical aspect of your business operations - credit card processing fees. We've conducted an in-depth cost analysis, comparing Quickbooks (QBO) and Jane/Square, to help you make an informed decision.
Credit Card Processing Fees: A Breakdown
Processing credit card payments involves several fees. These include transaction fees, interchange fees, assessment fees, and industry certification and risk-related fees. The rates can vary depending on whether a card is physically present during the transaction or not.
Case Study: Processing $57,600 in Sales
Let's assume your business processes $57,600 in sales, with transactions of $100 recorded three times per day for four days a week over 48 weeks.Â
With Quickbooks, the total fees would amount to $1814. On the other hand, Jane/Square offers a lower fee structure, with the lowest fees amounting to -$1526.Â
At first glance, it may seem like Jane/Square is the more cost-effective choice. However, the real savings come in when you consider the reduction in administration and bookkeeping time with QBO.
The Quickbooks Advantage: Time is Money
While you would pay about $.50 more per transaction with QBO, you save 9.6 hours of bookkeeping. This is because QBO automates the bookkeeping process, freeing up your time to focus on other aspects of your business.Â
Conclusion: Look Beyond the Transaction Fees
While it's essential to consider the transaction fees when choosing a credit card processing service, it's equally important to factor in other costs, such as the time spent on bookkeeping.
In this case, the slightly higher transaction fee with QBO is offset by the significant time savings, making it a potentially more cost-effective choice for small businesses.
We hope this analysis helps you make an informed decision about your credit card processing service. Stay tuned for more insights and tips to help you run your business more efficiently.
Until next time,
Christine Walters
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