Every time a credit or Debit card is processed there are several companies that take their cut. These include issuing bank, credit card company, merchant, ISO, merchant account provider, security providers, etc.
While these service fees and charges may only add up to a few pence and small percentage per transaction, they do add up. Unfortunately, the fees are almost always passed on to the merchant, and ultimately an unavoidable expense.
Letting your bank handle credit-card processing may seem convenient–but that convenience comes at a price. Alternatively, most good payment service providers can help you change your merchant account. Because they buy in bulk, they can negotiate good transaction rates with the bank.
Of course, fees aren’t the only considerations when choosing the right processor. Service Tec support and Lag time – how quickly money is deposited in to your account, matter too.
However, there are a number of ways to get lower credit card processing fees and lower your expenses for doing business and your total cost of investment for credit card processing services. Consider the following ways to lower your credit card processing rates:
Grow Your Business
Easy for me to say, right? Unfortunately, one of the best ways to get lower credit card processing rates is simply to be a bigger company. Credit card processing services understandably give priority to larger, more established accounts. If your company has grown and you’re taking more payments than you did years ago when you established your account, it might be time to discuss lower options with your merchant service provider.
Why Choose me? Superfast set up – Start taking card payments within days. Lowest rates guaranteed – Cut down your card costs by as much as 40%. 24/7 UK support – Expert assistance whenever you need it AND We promote your business – Contact me for a No Obligation Quote or Review your current charges!
While third-parties typically offer cheaper rates than banks, there are plenty of caveats.
Credit card transactions are usually split into two tiers for discount rates. The non-qualified rate is for Customer not Presents (CNP). The card details are entered manually without the Personal Identity Number (PIN).
To qualify for the (cheapest) qualified rate, Customer Present (CP) you have to have the card present and the card owner Inputs their Personal Identification number (PIN).
Some processors may deem a wide range of charges non-qualified or mid-Qualified. Make processors spell those out before giving them your business.
Have the correct solution for your business needs.
Terminals come in various guises. Counter top, Portable, Mobile and eCommerce and Virtual. All these solutions vary in operating costs. Make sure you have the right solution for your business needs or style of operation.
Watch Your Monthly Statements
Chances are that when you see your monthly statement you won’t understand it, and might find a few extra charges you weren’t aware of. Don’t worry if you don’t understand all of the acronyms. Call your merchant account provider and don’t be afraid to ask questions.
Once you understand the monthly statement structure (or even if you don’t), be sure to check it every month and see what changes. Unfortunately, credit card processors are known for sudden, unannounced fee hikes. If you find new fees and the bank isn’t willing to work with you to address them, it may be time to…
Sample Monthly Statement
Whether you’re fed up with your current credit card processing company or are just shopping around for another option, changing plans may be your best option to get lower fees. Sadly, there are merchants who simply put up with higher fees and sub-par service simply because finding the right alternative is time consuming, and they’re at least complacently accustomed to the current program and interface.
For anyone interested in starting up with a new online merchant account, there are reasonable options available. You can find the prices you deserve without sacrificing security or Customer service. Changing from one service to another may be a bit uncomfortable at first, but ultimately worth it. The best credit card processing companies have an easy application and are simple to integrate so you won’t miss a beat during the transition.
Typical processing contracts are two to four years long, and getting out early could cost you a few hundred pounds. Any more than that is probably too steep.
Complete the form for a No Obligation FREE rate review to see if we can lower your charges. It’s your money!
Helping Retailers and service providers to take payments by debit/credit cards face to face or online – Saving up-to 40% in Fees & Charges
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