Three Habits to Save on Credit Card Processing Service
Business owners today are reliant on credit card processing services to complete their business transactions. Many consumers prefer to pay at brick and mortar locations with credit cards, and credit cards or debit cards are a necessary format to use for e-commerce transactions. However, many business owners complain about the high cost of credit card processing services, and you may be looking for a way to reduce this part of your overhead. There are a few tips to follow to help you save money in this area.
Understand the Fee Structure
The fee structure of credit card processing services can vary from company to company. Some, for example, may have a per transaction fee, and others may charge a percentage of the total sale. This is further complicated by the fact that some have a sliding or adjustable scale. For example, you may be charged a flat fee for a certain number of transactions per month, but an additional fee may be imposed when your number of transactions exceeds this amount. As another example, the percentage you pay of the total sale may adjust based on the actual dollar amount of the sale. For instance, you may pay a lower percentage for more expensive transactions.
Review Your Transactions
Because the fee structure can vary significantly from provider to provider, it is important to understand the nature of your transactions. Your venue may have numerous transactions per day that are just a few dollars each, or you may only have a couple of transactions per week that have a very high dollar amount. Consider the average number of transactions you complete during a month, and consider the average dollar amount of these transactions. With this information, you will be able to better determine the fee structure that is most cost-effective for your company.
Shop Around for the Best Rates
If your company is like many others, the number of transactions and the average dollar amount per transaction can fluctuate over time. Because of this, you should get into the habit of completing the above steps periodically. Then, shop around for the best rates every couple of months based on the current fees and types of transactions you are completing. This will help you to avoid paying higher fees than necessary.
Credit card processing services are important in the business world today, but the fees can be expensive. When you follow these tips regularly, you will be taking a step to reduce your overhead.