Posted on: 18 February 2015
Many small businesses struggle with the decision to accept credit cards. While credit card processing services do cost money, businesses that can't process credit cards risk losing customers to their competition. Fortunately, there are ways for small businesses to pay lower credit card processing fees, making credit cards a more affordable option.
Swipe, Don't Key In
Swiping cards can reduce risk of fraud, so fees are higher for cards that are keyed in. To pay lower fees, institute a policy stating that cards cannot be accepted over the phone. If you must accept cards over the phone and key numbers into a terminal, performing security verification can help to lower the rates.
Shop Around and Negotiate
Not all merchant service providers are created equal. Fee structures and rates will vary from one merchant service provider to another. In addition, fees are usually negotiable. As you're picking the merchant service provider for you, compare fees and seek competitive rates.
The best way to negotiate fees is by showing the merchant service provider that your business sees a high volume of transactions. The more business you'll pass on to the merchant service provider, the less money your business may have to pay. In order to prove how much business you can bring to the table, you may need to establish your business with one merchant services provider before shopping around for a better rate from another merchant services provider.
Accept the Least Expensive Credit Cards
Some credit cards cost more to process than others, which is why many businesses limit the types of credit cards they accept. To avoid paying higher transaction fees, establish clear policies about which credit cards your small business can accept.
Batch Transactions Every 24 Hours
Send your completed transactions to the acquiring bank within 24 hours of processing the payment. Sending your batches to the acquiring bank less frequently than every 24 hours can incur higher fees raises the possibility of a charge dispute and can result in higher fees.
Establish a Credit Card Minimum
It's not worth it to pay the transaction fees for a small purchase. Establish a credit card minimum to help maximize the profits from credit card sales.
Find Out How You Can Reduce Risk
Risks cost money. Reducing risk of fraud and disputes in your credit card transactions can reduce your costs and fees. To find out more about how you can reduce risks for your credit card transactions, speak with a credit card processing expert or consult with a representative from your merchant services provider.Share