For many firms, the mobile payment processing fee is a crucial part of the payment process. Credit card payments, on the other hand, eat into a sale’s profit margin. That has many firms scratching their heads about how to keep costs minimum that it feels free payment processing is the best option for them to save cost.
As a result, merchant processors don’t devote much time to informing their customers of slice credit card processing. Here are six easy and quick methods to lead slice credit card processing& reduce your credit card processing costs right now.
Choose the right fee structure:
Think about which of the three pricing bundles above could be best for your company with considering mobile payment processing.
A flat fee payment processor like Square is likely to cost more than an interchange-plus pricing system if you’re selling high-ticket items. Businesses need free payment processing but there are two types of payment processors: flat fee and interchange plus. Both charge a flat percentage fee for every transaction, but each has a slightly different price structure.
Get to know your clients’ buying habits. Do the vast majority of them make purchases with debit cards through mobile payment processing? Do you have a credit card to avail of zero-fee credit card processing? Are there any credit cards for businesses? Look into that data or ask your consumers what they use to make purchases at your shop. It’s best to rule out the tiered pricing scheme if most of your customers are using business credit cards while considering mobile payment processing.
Negotiate lower rates:
Having worked with your payment processor for a while and seen a rise in your sales volume is the time to negotiate a new contract. The company’s service provider does not want to lose a growing business.
Encourage your customers to use debit cards:
If you have a tiered pricing scheme, this is critical. If your customers use debit cards more frequently, you’ll save money because the lower, qualified rate will apply to most transactions. Signs at the checkout counter expressing your affection for cash and debit cards may encourage customers to accept your preferred method of payment if they like your business.
Have your customers insert their cards?
When there is more room for error, a service provider with a tier-based pricing structure will charge more. When possible, have your consumers slide their credit cards into your terminal instead of having to manually enter their card information.
Use a chip reader instead of the terminal’s swipe function to remain EMV compliant. Processing fees may not be saved, but it can save you money& lead to slice credit card processing (and a lot of headaches) if a client disputes your payment in the future.
Set and hold to a minimum for card transactions:
If you’re paying at least $0.30 for each transaction, don’t let your consumers charge a $2 item to their card. Interchange-plus pricing and tiered pricing systems require this, while processors charging a flat payment % do not.
Pass the fees on to your customers:
Businesses can now levy a fee or premium to clients who pay with a credit card in most jurisdictions as of 2013.
What you can and can’t do is regulated by a myriad of restrictions. Most debit card transactions, for example, are exempt from the surcharge. Alternatively, you might boost your rates by a tiny amount and offer a discount to consumers who pay with cash or debit cards, or you can charge a slice of credit card processing.