Credit card processing fees could be pretty high. In case you have not chosen the right merchant services provider, you would end up paying thousands of dollars every year as credit card processing charges. You must find out exactly how transaction fees or charges are calculated. Try to catch hold of tricks and effective tips to negotiate the most appropriate merchant account agreement just right for your business.
Credit card processing fees are nothing but the cost of running the business and this cost cannot be avoided by the majority of companies. Businesses, government agencies and consumers find it preferable to pay using credit cards, while purchasing products as well as services. As such credit card purchases are responsible for 65 percent to 100 per cent of a firm’s sales.
You end up paying thousands of dollars as processing fees every year depending on the merchant services provider and the sales volume. Unfortunately these costs are unavoidable. However the best part is that a merchant can think of many ways to lower credit card processing fee and end up saving a substantial amount. Here are some of the best tips for cutting down your credit card processing fees.
Negotiate Effectively with Credit Card Processors
The perfect way of negotiating with credit card processors is by simply leveraging the volume of your transaction. This is precisely because the more you are able to sell, the higher number of transactions are performed. Thus, this adds more value to the processor.
Minimize Credit Card Fraud Risk
If you are posing higher security threat as a merchant, you would end up paying higher credit card processing charges or fees. There are two crucial ways of lowering credit card fraud risk. You must remember to swipe credit cards and enter security information.
Go Right Down to the Source
Not too many consumers are aware of the fact that the vast majority of credit card processors do not process any credit transactions by themselves. This only implies that you end up paying a little on processing fees every time. This money can be saved by signing up with large banks which process all transactions in-house, instead of smaller local banks.
The simple logic is that by going straight to the source and foregoing small scale banks, you can eliminate middleman processes, thus saving money by avoiding overheads and other costs in the long run.
Set your Account Up Properly
Setting an account up is extremely important, as a single mistake could end with you having to pay more processing fees. This contingency can arise quite easily as a result of you providing incorrect information about your business. Several factors impact the fee structure, ranging from type of business to type and frequency of transactions.
Your terminal also needs to be set up and primed so that it can process transactions smoothly. If all transactions are processed within 24 hours, the number of accumulated transactions will be lesser, thus reducing processing charges. Rather than doing it few times a week, if your terminal can be scheduled to process batches of transactions every day, you save a good deal on processing fees in the long run.
Consult Processing Experts
The majority of small business owners have no idea about credit card processing. You must conduct a decent amount of research to get acquainted with the basics, and if that isn’t enough, head over to a consultant or an adviser who is an expert in the field. He will be able to explain every step to you, debunk most myths and even manage to get you lower rates by making smart recommendations.