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