5 Tips to Reduce Your Credit Card Processing Costs

Credit card processing fees have become a necessary cost of doing business. Many business owners may not realize that credit card processing expenses are typically one of your top 5 business expenses. Even though accepting credit cards has become a necessity for most businesses, there’s no reason why you can’t demand the most competitive program from processors. Here are 5 quick tips to reduce your credit card processing costs:

1. Make sure you have an Interchange Pass Through program (aka Cost Plus or Interchange Plus)
   1. This is the most transparent and cost effective pricing strategy for all merchants
   2. If you see things like Flat Rate, Mid-Qualified, Non-Qualified or Tier then you DO NOT have an Interchange Pass Through program
2. Closely monitor your statements for price increases and miscellaneous fees
   1. Most processors are notorious for raising your rates
   2. In many cases, fees can be avoided or may not be standard industry fees
   3. Processors will often times inflate the actual fees
   4. The good thing is, processors are usually required to notify you of price increases and/or added fees
3. Avoid downgrades when possible
   1. A downgrade occurs when a transaction falls to a higher rate than what the transaction would normally qualify for
   2. If you’re on a tiered program you will see these amounts in the Mid-Qualified or Non-Qualified sections of your statement
   3. Whenever possible swipe the card at the point of sale device and enter any required information to qualify for the lowest rate.
4. Stay away from high cost equipment leases and software
   1. Credit card processing equipment and software can usually be purchased at affordable prices ranging from $100 to $400
   2. Leases can add up to thousands of dollars over time and most leases are not cancellable
5. Align yourself with a reputable processor and always read the fine print
   1. Reputable processors will guarantee their rates in writing, provide superior customer service and will make it easy to understand what you’re paying for
   2. Before entering into any contract, remember to read the fine print to identify any hidden fees
   3. Avoid contracts that say “rates are subject to change”

Failing to ignore these 5 simple rules can have a tremendous impact on your program. For more information on how to get the best program, please visit www.getauditadvantage.com.