If you are a business, especially a small business, credit card processing fees can add up. Every single time a customer or client swipes a card, a piece of your bottom line goes to one transaction fee or another. If you are not careful, these fees can significantly eat into your company’s profit margins. This could stymie your business’s opportunities to grow and thrive. Managing these credit card processing fees is therefore an important part of small business management. Here are some quick tips to help you stay in control of credit card fees, and help your company be more successful.
Find a Good Partner
One of the most important thing to do when developing your business’s payment system is to go forth with your eyes wide open. Find a banking partner that will provide you with the best credit card processing rates. Failing to do so could leave leave you susceptible to high or hidden rates, all of which can eat into your profits.
Fortunately, since credit card processing is such a critical, global business, there are a multitude of choices to consider. Due, for example, offers great option for businesses of all sizes.
Its standard 2.8 percent processing rate for credit card payments is one of the most competitive in the business. It will negotiate with clients on other rates for business clients with significant credit card processing volume as well.
The Art of the Deal: Negotiate
As stated above, credit card payment processing is big business. If you are working with a company and are an established client who pays on time and boasts impressive volume, but you are not happy with your rates, let your payment company know about it. You can work with them to review your rates, and re-negotiate the fees they charge.
The more transactions they process for you, the greater leverage you are likely to have in negotiating a good rate.
Reduce Chances for Credit Card Fraud
Credit card fraud is devastating to American businesses, costing them an estimated $190 billion each year, and often driving up credit card processing fees along with the losses. Fortunately, there are ways for merchants to protect themselves against credit card fraud and mitigate the threat it poses. One of the most effective ways is to ask a customer for the card’s billing address.
Additionally, businesses should be especially cognizant of any client requesting a rush order or extremely high dollar purchase with a credit card. Finally, companies should keep a list of any recent fraudulent card activity they have experiences. This will help them guard against future attempts by the same bad actors.
Consider Terminal Costs
When a business chooses to process credit cards, one easy to overlook transaction cost is the hardware involved. Credit card processing terminals, particularly the wireless ones, are often costly and can involve long-term contracts. One way to reduce the price of credit card transactions is to forego these terminals altogether.
Fortunately, credit card payment systems are continuing to evolve rapidly, and offer merchants a plethora of options. There are an ever-expanding number of payment apps that make it easy to accept credit card payments. It will help you forgo costly wireless credit card terminals.
Due’s digital wallet and e-cash systems, for example, offer great examples of the ways businesses can now accept payments, and avoid the added costs of leveraging terminal systems.
