Credit card processing fees are one of the key reasons why business owners are reluctant to adopt credit card acceptance. We get the pinch of having to deduct such fees before arriving at your profit! That being said, credit card processing is necessary nowadays. It is a popular factor for customers while shopping. Being able to tap and pay on to go provides convenience like no other, and can motivate your customers to buy more. Here are some tips for you to lower your credit card processing fees!
What Do Credit Card Processing Fees Constitute?
Credit card fees are necessary for covering a variety of services such as:
- PCI (Payment Card Industry) Compliance Fees: This is an annual fee To adhere to Data Security Standards (DSS) to protect the data of both customers and merchants.
- Interchange Fees: When a customer carries out a transaction, the merchant’s acquiring bank has to pay a fee to the customer’s card issuer.
- Payment Processor Fee: This fee is paid to your payment processor monthly for use of their service and products.
Now, here comes the important part: How do you reduce such fees?
Look Out For Any Hidden Fees
Normally, processors have hidden fees to make their products and services look appealing on the surface. Such fees include Daily Discount Fees or Tiered Fees, which involve a limited range of services you typically have no choice but to pay for. This can be a costly mistake! Look out for processors with no hidden fees and keep their prices competitive and transparent.
Avoid Any Additional Costs By Setting Up Your Merchant Account And Terminal Properly
Credit card processing fees usually rely on the characteristics of your business such as your business type, transaction type, and frequency. Providing incorrect information might negatively impact your credit card processing costs and fees and cause you to incur unnecessary costs. On top of that, processing fees are also affected by terminal settings. The higher the number and transactions and the waiting time, the higher the credit card processing fees. To get around this, you can consider carrying out a transaction batch daily instead of a few weeks.
Work With Your POS Provider For Payment Processing
To reduce credit card processing costs, you can opt to work with your POS provider for payment processing to make the whole process simpler and avoid any extra costs such as integration fees or fraud prevention fees that working with another provider can include, and you can lower your overall fees. What is even better is that you can have a fully integrated payment system that can better serve you and your business in the long run. Fully integrated payment gateways can also benefit your business in a myriad of ways, not just regarding credit card processing. Such examples include collecting your customers’ data to better appeal to them, inventory management, and many more!
Get The Lowest Credit Card Processing Fees With Millennium Payment Systems
We offer competitive, transparent rates with no hidden fees and functionalities to take your business to the next level. Contact us today!