As a business owner, you don’t need anyone to tell you it feels like there is a fee for everything. Every single service or piece of equipment your business uses comes at a price.
But, what if things were different?
What if there was a way to cut some of the costs involved in operating your business without sacrificing the efficiency or capacity your business has for processing credit cards?
When it comes to the way you process your credit cards, there just might be. These are a few things you can do in your business that will help to reduce how much you spend on credit card processing. Even better, if you work with the right organization, you can even get free credit card machines for your business. It’s like getting the cherry on top PLUS the whipped cream and sprinkles.
Do these things to reduce your credit card processing fees while keeping yourself, your customers, and your bank account happier. See for yourself what a difference it makes for your bottom line.
Choose the Right Fee Structure
One of the most difficult aspects of credit card payment processing for business owners is understanding the fee structure. Even the simplest, most transparent fee structures may feel like they are made of smoke and mirrors. Part of that is rules created by credit card issuers that merchants and payment processors must abide by.
The key is to make sure you understand the fee structure and choose the right one for your business. Do not work with a payment processing partner until they’ve explained their fee structures, discussed your options, and presented a plan that you not only understand, but also feel comfortable with.
Pass the Fees on to Your Customers
While laws do change constantly, and it is important to check the laws in your state, not to mention rules by various credit card issuers, it is currently allowable for businesses to charge a surcharge of up to four percent to all credit card transactions.
Of course, the question then becomes a matter of how your customers will tolerate the charge. In some businesses, it will be of little consequence. In others, customers may feel outraged or slighted. You know your customers best and must choose the option that is best for your business.
Use EMV Chips (Don’t Manually Process Transactions)
Credit cards contain a wealth of information about your customers and their accounts. Using an EMV chip reader or NFC contactless technology (Apple Pay, Samsung Pay, etc.) reduces the risk of fraud, theft, or manual entry errors. Swiping cards used to be the norm, but EMV chips and contactless payment technology adds extra protection to your customer’s data above and beyond the magnetic strip.
Not to mention it can save you money. Manually entering credit card transactions comes with the highest fees, followed by swiping. Dipping an EMV chip or using contactless payment technology provides the highest security to customer data and the lowest interchange rates, making it the best option for you and your customers.
Impose Credit Card Minimums
It’s not at all uncommon to see stores where small transactions are routine, like coffee shops, donut shops, convenience stores, etc. to impose transaction minimums when accepting credit cards. This helps to minimize the sting of transaction fees from credit card companies and payment processors alike.
Don’t Lease Processing Equipment
Many payment processing partners offer credit card machines and other point of sale equipment for free or for sale at greatly reduced prices. Leasing the equipment could cost your business more than you anticipate—especially when there are so many options available to you that are far more cost-effective.
Partner with Providers Who Offer Free Credit Card Machines
A growing number of payment processing partners are seeing the benefit of offering free equipment, like credit card machines, to customers. It’s a great plan that benefits both parties. However, some merchants have hidden fees and expenses buried in the terms. Make sure you read the fine print and understand what you’re getting for free and what you might be paying for elsewhere.
Only Work with Providers Who Offer Fixed Rates
Fixed rates are simply easier for you to accommodate and budget for. They also provide a certain degree of transparency to the transaction making it easier for you to be confident you’re getting what you paid for and not paying for something you can’t identify.
Accept More Payment Methods
Credit cards aren’t the only options open to businesses today. The more payment methods you accept, the greater your rewards may be. Some of the alternatives to consider include:
- Gift cards (and other prepaid cards)
- Digital wallet transactions (Apple Pay, Google Pay, Samsung Pay, etc.)
- Debit Cards
The more payment methods your business offers, the wider the appeal of your products and services become to customers who prefer certain transactions.
Settle Transactions Quickly
Allowing transactions to linger in the ethers of the world wide web provides opportunities for things to go wrong. Accounts can become overdrawn, glitches can occur, and any number of things can take place that would prevent the transaction from closing as expected. Settling these transactions quickly ensures you getting fast access to the cash your business has earned.
Bankcard Services offers a wider range of flexible, business-friendly payment processing options along with a large selection of equipment to help you get more from your investment. Contact us today to learn more about how we can help you grow your business with a month-to-month, no long-term contract.