Credit Card Processing Explained for Small Businesses
When a customer pays with a card, money doesn’t go straight into your bank account.
It passes through a few steps behind the scenes — and each step can affect what you pay.
You don’t need to understand the industry to run a business. You just need to understand where your money goes.
What Credit Card Processing Is
Credit card processing is simply how a card payment moves from your customer’s bank account to your bank account.
When someone taps, inserts, or types in a card:
The payment is approved
The sale is completed
The money is sent to you later
All of this happens automatically. The confusing part is how fees are applied along the way.
Why Processing Fees Are Hard to Understand
Most business owners never see a clear explanation of their fees.
Instead, they get statements filled with line items that don’t explain why charges exist.
This is why:
Two businesses processing the same amount can pay very different fees
A “low rate” doesn’t always mean a lower bill
Statements feel impossible to audit
The confusion isn’t accidental, it’s just how the industry has worked for a long time.
What You Can — and Can’t — Control
Some parts of processing are fixed and the same for everyone.
Other parts depend on how your setup is structured.
You can’t control:
The base cost set by card brands
The type of card your customer uses
You can control:
How your pricing is structured
Extra fees added on top
How your POS is set up
Whether transactions are processed efficiently
Understanding this difference is where real savings usually come from.
How Your POS Impacts What You Pay
Your POS system doesn’t just run sales, it affects how transactions are processed.
If your POS is:
Set up incorrectly
Missing required information
Using outdated workflows
You may pay more in fees without realizing it.
That’s why POS and processing should always be looked at together, not separately.
Common Credit Card Processing Misunderstandings
“A lower rate always means lower costs”
“All processors charge the same fees”
“My statement clearly shows what I’m paying”
“Switching automatically saves money”
These assumptions often lead to frustration instead of clarity.
How SaborPay Helps
We explain your processing in plain English.
We show you where costs come from, what can be adjusted, and what actually fits your business.
No pressure. No sales tactics. Just clear answers.