Now that a majority of consumers pay for their goods with credit and debit cards, it’s important for companies to make sure they’re getting the lowest credit card processing rates. The fees your credit card processing company charges you can add up over time and make the cost of doing business even higher if you’re being billed high rates and monthly fees. Businesses shouldn’t be worried about the cost every time a customer swipes a card. Instead, companies should look to work with processing companies that focus on merchant solutions for credit card transactions and help keep the prices under control. Here are simple ways to help your company avoid huge fees with credit card processing.
Partner With the Right Vendor
The best way to pay much less each month for credit card processing is to shop around and find the right vendor. Look for a company that specializes in credit card processing for business no monthly fee. Find a credit card processing company that can work with your transaction volume and give you the rate that you want.
Negotiate for Lower Rates
If you’re stuck with a particular vendor or simply want to stay put, think about some ways to negotiate a lower rate for credit card processing. If your business is booming and adding a large number of credit card swipes to the system daily, it may make sense to go to your processing partner and ask to either eliminate or lower monthly fees. Don’t be afraid of asking for what you want from your vendor. The worst possible thing that could happen is they could say no, but you stand to potentially save money if they agree.
Lower Your Security Risk
Another strategy that may help a business pay less for credit card transactions is to lower the risk for credit card fraud. Companies that are left on the hook for fraudulent charges may pass on the cost to their business customers. Be proactive about the potential for fraud and make sure your business has steps put into place during the transaction to prevent fraudulent charges. Improving your company’s transaction security could also help you avoid losing money to lost sales and give your customers more reason to trust your business.
Ensure Your System Has the Proper Setup
It’s also important to make sure your automotive POS system, vendor account and transaction processes are set up properly and efficiently. Instead of processing transactions every few days or once a week, it may be more efficient to finalize transactions electronically each day. Ideally, it’s best to settle each transaction as quickly as possible.
Educate Your Customers
The last tip to help your company possibly save more on credit card transactions concerns your customers. Businesses can steer customers towards certain behaviors when making purchases to help lower the cost of credit card processing. One way is to discourage small transactions because the processing cost tends to be more than the purchase may be worth.
Improve Your Bottom Line
If your company does most of its business through credit card payments, you can improve your bottom line and increase your profitability if you lower your processing fees. These fees may be a large chunk of the cost of doing business, and reducing them could help advance your company’s financial future.