How Do i Get rid of my credit card processing fees ?
If you are a merchant, Credit Card payment processing companies will charge you a fee of approximately 5% on every transaction that your customers make using their credit card. This fee is a combination of several different types of fees, some of them can be hidden from you.
If you have a lot of credit card transactions payment processing companies would not mind negotiating with you on the fees that they charge you.
As the payment processing companies are third party companies they also take a particular amount from the bank as fees. Apart from negotiating with the companies, there are other ways you can get rid of your Credit Card processing fees. These are the following few ways:
- Choose cash over card:
Try to encourage your customers to use cash instead of their credit cards. In case they do not have cash, accept debit card payments, but try to discourage the use of credit cards. In case your customers still use credit cards a lot, you have an option to charge them a convenience fee. You can set up a fixed rate for using a credit card. This way your customers would rather choose the option of cash or their debit card.
- Choose the right company:
Make sure that you have done a lot of research before going ahead and choosing a company to do business with. Check which company is giving you a better service at minimal fee charged. There are some companies who do not charge any fee if your savings are less, but would charge you an annual or monthly fee instead. Choose the company that is ready to negotiate on the fees and has great customer reviews.
- The company should also be well known and have a customer support to help you as and when required. There are companies that also provide you terminals absolutely free or on rent so that you could invest more on your business.
- Beware of fraud risk:
If there is a fraud risk associated with your terminal you will end up paying a fee much higher than normal. You have to make sure that information you give your payment processing company is absolutely correct in every way. Try to swipe the customer’s card instead of using chip or inserting option.
- One other very important thing; in case the customer does not have a credit card handy, or if swiping is not working and you have to manually enter the details you should ask the customer to answer some security questions to validate the transaction. This will ensure proper security and also would win the faith of customers.
- Get to the source and choose the right card:
You can directly get in touch with the bank that puts through transactions. Instead of involving a third party processing company, you can save a lot if the bank agrees to do business with you.
- A small town bank will never agree to this it is only the big banks that are in the business for this. Also, when the customer wants to pay using credit card always ask the customer if they have the card that charges you lesser processing fees.