Search
  • NoFeePro

5 Ways to Lower Credit Card Processing Fees

Updated: 2 days ago

Nowadays, more and more customers favor paying by credit card because it's more suitable and helpful than cash. Retailers that receive online and credit card payments require paying a fee for each transaction, called a payment processing fee.

What is the payment processing fee?

The payment processing fee is the cost that payment service gives charge store owners to operate the payments from their customers. This cost covers the expenses for the following:

· Card issuer

· Card network

· Payment processor

The credit card processing fee accounts for a small part of the transaction value. However, the total amount isn't tiny when combining all the transactions. When you attach it to the monthly authorization and assessment fees, the overall monthly amount you have to pay for credit card processors can be huge.

With everything small business owners have to and believe about, credit card processing fees may not be anything that automatically comes to mind. The fees may not seem like a large amount by themselves, but those small percentages processors accept for every transaction can rapidly add up. And when you merge transaction fees with assessment fees, authorization costs, and monthly fees, your monthly credit card processing bill can become much higher than you expect.

There are various points to cover under the credit card processing fees. Such as:

· Credit card processing fees are usually negotiable and unsettled.

· Accepting card payments personally and making sure your account and terminal are set up can save you money.

· Account fees can attach to your general processing costs, and a few of them are also negotiable.

So, if you are paying too much for credit card processing, the following are the five ways you can do to lower your rates:

Settle the matter with credit card processors-The only way to settle the case with payment processors is to be seen as a merchant that adds value, thus making the vendor want your business. Apart from this, you can negotiate with credit card processors by supporting your transaction volume. The more you sell, the more transactions you have to perform, and the more value it adds to the processor.

1. Reducing the possibility of credit card fraud-

The higher the security risk you constitute as a merchant, the higher your credit card processing fees will be. You have two primary ways of reducing the possibility of this kind of risk for credit card fraud:

· swiping credit cards and

· entering security information.

2. Use an address authentication service-

To take a further step in lowering credit card fraud, use an address verification service (AVS), a system that tests the cardholder's billing address with the card issuer. This fraud-fighting equipment has a significant advantage in the world of e-commerce, including limiting chargeback.

3. Set up your account and terminal appropriately-

Sometimes, a simple error can lead to higher credit card processing fees. Avoid this by setting up your account the right way from the beginning. If you keep your account improperly, you risk suffering higher processing fees from giving incorrect business details.

4. Take advice from a credit card processing expert-

Most small business owners know not anything about credit card processing. Get a better understanding and an advocate by consulting a credit card processing expert.

Conclusion-

Using the five ways to Lower Credit Card Processing Fees could help small businesses deal with financial issues.

21 views0 comments