Credit cards are some of the most widely used financial tools in the world. They make it easy for people to buy items online and in-person and can provide a level of convenience that debit cards simply cannot match. Because they are so convenient, credit card payments also tend to be more common than cash or checks.
Unfortunately, credit cards aren’t free! Accepting credit card payments requires an upfront cost that is usually paid by the credit card processing company itself. While that may seem like an unfair arrangement, it’s simply how credit cards work. Fortunately, the fees charged by companies that process credit card payments are usually very transparent and can be avoided altogether through some of the cheapest methods for accepting payment.
1. Online Payment Platforms
Many online marketplaces and retailers also offer payment platforms to their customers. These allow users to process payments on the Web through third-party services like PayPal or Google Wallet that handle the transfer of money for them. This is an easy way to accept credit card payments by paying minimal fees.
2. Use merchant service providers instead of a banks
Banks that offer merchant services feature a tiered pricing system in which the more they process, the less they charge. This can be especially beneficial for small businesses with low credit card processing volume because it allows them to scale their fees as their business grows.
3. Look for interchange-plus pricing
Interchange pricing is one of the most common ways a credit card processing company prices its services. It is a flat fee that’s applied to every transaction and paid by merchants to providers. Interchange-plus pricing, on the other hand, features a flat rate combined with an additional markup on top of interchange fees. This can reduce costs for businesses that accept a lot of credit card payments.
4. Cut services that you don’t need
Many businesses sign up for a variety of credit card processing services when they first start, only to find that they don’t need them all. Review your credit card processing needs and eliminate any services that you don’t use or that you could do without. This can help reduce your overall processing costs.
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5. Avoid lengthy contract terms
Remember, you are shopping for the cheapest credit card processing services. Make sure to find a company that offers low-cost services with no strings attached. Companies that offer lengthy contracts or signup fees are often trying to lock you into an expensive contract before you have the chance to review your options.
6. Look for flat-rate fees
Credit card processing companies often charge a flat fee for every transaction. This type of pricing is especially advantageous for businesses that process a large number of credit cards each month because it ensures that they aren’t paying out more than they have to.
7. Negotiate or switch providers
Negotiating is one of the best ways to save money on credit card processing. Contact your existing provider and ask them to lower their rates or switch providers completely. There are many providers out there, so make sure the one you choose offers the best possible rates for your business.
8. Set minimums on credit card transactions
This is another way that credit card companies can reduce your costs. Businesses that process a lot of small transactions may be charged higher rates due to the increased processing costs associated with each one. If you’re looking to avoid these charges, consider setting minimums for credit card purchases or increasing prices by a set amount instead.
9. Find the right payment processor
Different credit card processors offer different rates, so it’s important to do your research. Online comparison sites allow you to review processing costs and compare services side by side, allowing you to find the cheapest way to accept credit card payments.
10. Watch out for hidden fees
Some providers charge hidden fees that can increase your costs with little warning. Make sure you are aware of all the fees involved and contact a company representative if there is ever something you don’t understand. It is important to know how your company is billing your customers so that you can ensure your prices are still competitive.
Conclusion
So there you have it. Top 10 ways to save on credit card processing. Make sure to consider all of these tips before you shop around for a credit card processing company. You can save hundreds, if not thousands each year by taking advantage of these strategies. if you would like any help with your payment needs make sure to contact us today to book a free consultation!
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Book a free call with us to discuss how we can help you expand in new regions, scale, and get the cash flowing in your business.
Resources
https://fitsmallbusiness.com/accept-credit-card-payments-online-free/
https://www.forbes.com/advisor/business/accept-credit-card-payments-cheap/
https://www.creditdonkey.com/cheapest-ways-take-credit-card-payments.html
https://www.nasdaq.com/articles/heres-the-cheapest-way-to-accept-credit-card-payments
https://ebizcharge.com/blog/6-ways-small-businesses-can-get-the-cheapest-credit-card-processing/
