Having costs associated with running a business is impossible to avoid and there is no exception to that when it comes to the costs associated with credit card processing. As such, you will want to save on expenses where you can. With the rising popularity of using credit cards as a primary means of payment, it is a good idea for companies to do what they can to reduce the costs of credit card processing as much as possible. With that in mind, here are some helpful tips to help you save the most when it comes to credit card processing.
Choose the Right Credit Card Processing Company
It is a good idea to shop around a little before settling on a particular company. Take the time to check out what different companies are charging so that you can know you are going with the best possible option. Make sure you dig deep to make sure you know how much you are really paying as there are often many hidden costs associated with payment processing companies. Find out if there are any extra fees for things such as cancellations and statements as well as any service or application fees. And if so, find out if you would be able to get these fees waived. Most processors offer merchants a free statement analysis. This can help you determine which rates are best for you.
Do Not Key in Payments Manually
A significant way in which you can avoid extra fees associated with payment processing is by not keying in payments manually. You may not realize this but keyed transactions are actually costing you more money. Since a lot of credit card fraud happens this way, it is viewed as a higher risk to processing companies and so the rates are raised accordingly. This is something you want to avoid as much as possible as it will help you save significantly on credit card processing fees.
Have a Minimum for Credit Card Sales
If you end up paying more in fees than you make on a sale then it is not even worth it to make the sale. A good way to protect yourself against this is by having a minimum allowed for a credit card transaction. This will help to ensure that you are not losing money over small transactions and will protect your bottom line. Enforcing this policy can be as simple as putting up a sign explaining this policy. This is a simple, inexpensive solution to a problem that could be costing you much more than you need to be paying.
Own Your Processing Equipment
It is also a good idea to own your own credit card processing equipment. If you lease rather than buy you will actually end up paying more in the long run. Buying your equipment outright can actually be very affordable and will help you save money when it comes to your bottom line.
Make Sure Your Rates are Fixed
There are many credit card processing companies that will start out with an acceptable rate but then raise their fees on you after you sign with them. Find a processing company that is honest with you and will give you fixed rates so that you aren’t caught off guard by unexpected expenses. This will save you from a lot of headache down the road.
These are several considerations to make that will provide you with significant cost savings. When it comes to credit card processing companies, it is a good idea to know what you are getting yourself into before you sign on with anyone. Keeping these things in mind will save you money, reduce stress and ultimately make you a more profitable and successful company.