With the number of operations that a business owner has to worry about, credit card processing fees may be at the bottom of their priority list. While the incurred expenses may appear small during each card transaction, the charges can accumulate quickly without regard to assessment fees, authorization charges, and monthly costs.
Here are four ways to cut down on credit card processing fees and save money.
Encourage More In-Person Transactions
Encouraging patrons to swipe or insert cards allows you to incur a lower number of fees than you would by taking their information over the phone. Most merchants and banks consider in-store transactions less risky because they promote lower interchange costs.
Swiped transactions are also more difficult to dispute, offering businesses more protection against retail chargebacks.
Offer ACH Payments
Automated Clearing House (ACH) payments are electronic bank-to-bank transfers that allow funds to move easier through accounts. ACH payments are significantly cheaper and more reliable than paper checks, wire transfers, or cash.
Additionally, ACH payments void interchange fees found when using credit and debit cards, making transactions cheaper for businesses.
Consider Becoming PCI Compliant
The Payment Card Industry (PCI) is a standardized rule set to protect consumer credit card data. Processing companies typically allow a time frame for businesses to become PCI compliant, generally between two to three months.
After the allowed time frame, processors will begin charging businesses a monthly non-compliance fee. By adhering to the standard, merchants can avoid extra costs and reduce their risk of data breaches and threats.
Review Your Statements
Routinely reviewing your statements is a straightforward way to reduce your card processing fees. Business owners may overlook increased charges because they happen gradually. But catching discrepancies in your statement allows you to negotiate with your payment provider or seek a processor better suited to your business.
As your trade grows, you may want to cut down on credit card processing fees. By reducing these hidden expenses, you can cut costs while making more money in your business.