Save Money on Processing Fees by Getting Processors to Compete for Your Business

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For those of you that want a quick and easy way to compare credit card processing rates, you might want to check out CardFellow.com or FeeFighters.com.

Both sites, which are only a couple years old, allow merchants to create a "reverse auction" which forces credit card processors to bid for the merchant's business.

Here's a quick explanation of what a reverse auction is...

A reverse auction is a type of auction in which the roles of buyers and sellers are reversed. In an ordinary auction (also known as a forward auction), buyers compete to obtain a good or service, and the price typically increases over time. In a reverse auction, sellers compete to obtain business, and prices typically decrease over time.

Here's how it works:

1. You create an "auction" by providing some information about your business.
2. Pre-screened credit card processors bid on your account.
3. You pick the best bid.

Like I said, quick and easy!

I think the most important thing about their service offering is that they pre-screen all of their partners to make sure they don't ding you with garbage fees or lock you into contracts. All participating processors have to offer interchange-plus pricing and no contract deals or else they don't make the cut. Not bad at all!

Both CardFellow and FeeFighters are free to use, but both companies receive some sort of "finder's" fee from whomever you sign up with.