One of the worst things about accepting credit cards from your customers is easily the credit card processing fees your credit card processor requires. The transaction fee can vary between processor to processor. Usually, you can bank on the fee being around .20 to .30 cents for each sale. On top of that, many processors will also tack on other fees that include a payment gateway fee, chargeback fees, and possibly even administrative charges. While these fees are common for all merchants, you can avoid the headache behind them using these four tips.
Choose Standardized Fees
There are some credit card processing companies that offer standardized fees. Instead of having fluctuating fees that can vary from transaction to transaction, you can choose to have a flat rate fee. This is very advantageous for merchants because it allows them to understand what to expect. Additionally, this helps merchants to plan for the expense each month so their accounting is much simpler. Typically, these companies that offer standardized fees are best for small merchants. If you own a large corporation, you may want to switch to a larger point of sale system.
Opt Out of Credit Cards
Another way to avoid the headache of credit card processing fees is by choosing not to accept credit cards altogether. You have to be very careful about choosing not to accept them as it could push some customers away. With advanced technology, there are numerous ways for your customers to pay without needing a debit card or credit card. This is definitely something to consider if the transaction fees are a concern for you.
Bargain with the Credit Card Processor Companies
Old fashion bargaining can go a long way when you have such high fees at stake. If you are struggling with the amount of processing fees you are paying, then you can always talk to the company about lowering them. If you have been a loyal customer for many years, they are more apt to lower the fees for you than if you just signed up with them.
Shop Around for the Best Fee
Every processing company chooses the amount of fees you pay. It is important to shop around and do your research to determine which company works best for you. Additionally, if you are choosing to switch processing companies, this may give you the opportunity to ask for lower fees when you go to discuss options.