1. Leverage and Negotiate
While you can’t avoid credit card fees, you can contact payment processors and negotiate better rates. In order to improve your chances, you need to be seen as a merchant that adds value so that the vendor will want your business. Having higher transaction volume can give you the leverage you need during such negotiations.
Generally speaking, the relationship between merchant and vendor is a two-way street. As long as you are able to provide proof of your value as a merchant, the vendors can lower your rates if it is worthwhile to them.
2. Credit Card Fraud Awareness
The higher risk your business is, the higher your credit card processing fees will be. Essentially, the more prone you are to fraud and fraud attempts will determine how much you will be paying. Some of the best practices to mitigate fraud risk can be to swipe as many cards as you can and have security information entered during each transaction.
Address verification services are another step forward in reducing credit card fraud. This system is commonly seen all over online storefronts. When a customer is about to purchase a product from your store, you can have the system verify the cardholder’s billing address with the card issuer. Not only will this reduce fraud, but it will also limit chargebacks against your business.
3. Set Up Accounts and Terminals Properly
Small mistakes can snowball into larger and larger fees. Therefore, properly setting up your account from the very start can help you save money in the long run. Improperly set up accounts can run the risk of incurring higher processing fees from incorrect business information. Your business’s type of business, type of transactions, and frequency of those transactions matter when it comes to credit card processing fees.
Be sure to look at your payment terminals as well and make it a habit to process transactions within 24 hours to lower the number of transactions in a period of time. Doing this will impact your processing fees positively with a very likely outcome of reducing them. Batch processing every day has been known to be the best method to remain cost-effective. The longer you wait to process your transactions, the higher your fees will be.
4. Consult with an Expert.
It’s likely that you don’t know much about credit card processing, and that’s okay. Most small businesses don’t have the resources to dedicate their own experts towards credit card processing fees. This is why you should consider consulting with an expert outside of your business. Professional help is a surefire way to guarantee you better rates for your business without having to put too much effort.
Another thing to keep in mind is that professional consultants may have valuable insider knowledge that could greatly benefit you. If you are not confident in your ability to negotiate with credit card vendors, an expert can help guide you through the process or negotiate on your behalf.
Luckily, Watchdog Communications offer such services. Our 100% risk-free audit can net you better rates and you won’t have to lift a finger. Perhaps we’re the experts you’re looking for?