Yes, businesses can deduct their credit card processing costs from their taxes.
However, there are some important factors to consider when deducting these fees from your taxes.
First, it is important to understand that there are two types of credit card processing fees: fixed fees and percentage-based fees.
No matter how much a transaction costs, fixed fees are levied on each transaction.
Examples of fixed fees include application fees, set-up fees, and monthly fees.
Percentage-based fees, on the other hand, are fees that are charged as a percentage of the transaction amount.
Examples of percentage-based fees include interchange fees and assessments.
Both types of credit card processing fees are tax-deductible for businesses.