According to the Canadian Bank Association there was 68.5 million credit cards in circulation in 2015 with a net retail volume of over $390 billion. The credit card use retail volume has continued to grow by 10s of billions of dollars every year. In Canada, credit card use growth is replacing cash, and business owners can no longer refuse to accept credit cards and hope to stay competitive. However, accepting credit cards is a major business decision as some credit card processing fees can be upwards of 5%. A one percent loss in revenue can be costly to any type of business. If you’re a business who is looking to accept credit cards or one that wants to lower their processing fee, below are some tips that can save you money.
- Do not enter credit cards manually, swipe them: since manually entering credit cards leaves more of an opportunity for fraudulent purchases, businesses that choose to manually enter their customers’ credit cards will likely have higher transaction fees. Choosing from several highly secure credit card terminals can save you money on your credit card processing fee.
- Have a credit card use minimum: Businesses that have primarily small transactions should impose a minimum credit card sales fee to avoid losing to much of their profit margin to processing fees. Minimums for credit card purchases may also lead customers to buy more items then they originally planned on buying which can help your business make even more money.
- Choose the right merchant account provider: To get the lowest overall processing fees be sure to work with a credit card processor that is upfront about costs and fees and will work with you to get you the lowest possible credit card processing fees.
Whether you’re just starting to accept credit cards, or just realizing how much of your profit margin is going to credit card processing, finding ways to reduce your credit card processing fee is an important aspect of managing your business and staying profitable.