Cutting Credit Card Processing Costs for Your Small Business
An expense that many large and small businesses overlook is that of the credit card processing costs. Business owners see it as a small percentage on each sale; however, when added up each month, this small cost can become quite an expense.
There are several ways for a business to cut credit card processing costs and save the spared expense each month.
Skip renting and buy if you can afford it
When you look at getting debit or credit card machine(s) for your business, it is likely that you will be offered the option of credit card machine rental. This is usually seen as an ideal option, because businesses are under the impression that the cost of machines are expensive. However, this is not true. Whilst high-end models may cost quite a bit, basic card machines aren’t too expensive and can work out to be cheaper when the terminal is bought for a once-off cost instead of paying a rental fee per month.
Avoid long term contracts
When considering the different contracts from the various payment processing companies, avoid contracts that extend for a long period of time. Customers often sign up for long term contracts, which mean that they are then locked into a certain rate. The only way to get out of these long term contracts is to pay a large cancellation charge. Your business may change, so look for flexible contracts and ones that allow you to cancel at any time.
Shop around for the best deal
If you are looking for a provider, be sure to shop around so that you are able to get the best option and lowest fees.
Although it can be a hassle to change between providers, changing from your current merchant service provider to another may mean that you could get the same service for less and usually providers will be more than happy to ensure that your transition is as seamless as possible.
Negotiate the Fees
A little known fact is that the fees that are charged by the payment processing companies can be negotiated. You should generally be able to negotiate the terms of the contract including the fees that you would be charged.
Mobile payment terminals for fewer transactions
If your business undertakes only a few credit card transactions, it might be worth looking at mobile payment options. Your smartphone or tablet can be converted into credit or debit card readers, thereby allowing you to accept credit and debit card payments at a lower cost. Instead of investing in costly card machines and other equipment, committing to long term contracts or paying monthly fees, you will pay a small fee per transaction made.
These are just 5 of many ways in which you can lower the cost of credit card processing fees. As a small business, you should always question all the fees that you would be charged and look at various providers so that you can get the lowest fee possible.