Credit card payment processing companies charge you a fee for every transaction your customers make using their credit cards. This will be an average of 5% on every transaction. Many times, companies are ready to negotiate with merchants on the total fee charged. Companies that are ready to be transparent and are looking for long term relationship with the merchants do not mind bringing down the fee a little bit or even eliminating it if possible.
Some payment processing companies believe in charging a fee on every transaction that you make. Some companies, however, charge you a monthly rental or an annual fee. All of these fees are not fixed. It is important to know how cheap merchant processing can help your business save money and grow at the same time. Here are a few ways to save on payment processing fees:
Make sure you do a proper research before choosing the company you would like to do business with. The company has to be ready to negotiate on the rates of fees. There are certain fees like PCI compliance, statement charges, etc. that can be eliminated if you are a high transactor.
If your business is doing well your payment processing company might even give you great offers so that you continue doing business with them. Choose a company that is reliable, has great reviews, and has a long-term customer support.
It is very important that you install the terminal with great care. Also the information that you provide to your payment processing company should be correct so that there is a reduced risk of fraud. If there is a high risk of fraud, there will be a high fee charged to you.
Other ways to reduce fraud risk are; by swiping the card while processing payment transactions, and requesting your customers to answer security questions in case you have to manually enter the card details for payment processing.
You can ask your customers to pay in cash instead of credit cards. Cash payments or debit card payments will not cost you any fees and you can save money. In case your customer wishes to pay using a credit card you can charge a flat rate of convenience fee to cover your loss.
You can directly get in touch with the bank that helps in payment processing. These are big banks that offer such services. Just like you, the bank does not want to pay a commission to a third party. If the bank does not agree to do business with you, ask your payment processing company to eliminate or reduce fees so that you can do business with them.
There are several companies willing to give you waivers on monthly rentals, annual fees, statement fees, batch fees, etc. as long as you give them good business by accepting more credit card payments, and choosing to use their own terminals. You can also take advice from experts and merchants who have been in the business for a long time before you take any decision.