Reducing merchant account fees is a top priority for business owners of all sizes. The cost of processing payments through a merchant account can add up quickly, and businesses can save a lot of money by taking the time to explore their options and find the best deal possible. There are many ways to reduce these costs, and we’ll outline some of the most effective methods below.
Shop around for the best merchant account provider
The first and most obvious way to reduce merchant account fees is to simply shop around for a better deal. There are many different merchant account providers out there, and each one offers different rates and terms. By taking the time to compare different options, businesses can save a significant amount of money on their processing costs.
Negotiate with your merchant account provider
Another way to reduce merchant account fees is to negotiate with your current provider. Many providers are willing to work with their customers to lower rates, especially if the customer is threatening to switch providers. It never hurts to ask, and you may be surprised at how much you can save.
Choose the right pricing structure
There are three main pricing structures for merchant accounts: interchange-plus, tiered, and flat-rate. Interchange-plus pricing is generally the most transparent and cost-effective option, as it passes along the actual costs of processing each transaction to the merchant. While choosing the right pricing structure won’t necessarily reduce your fees, it can help you avoid overpaying.
Use a payment gateway
If you process payments online, you’ll need to use a payment gateway in addition to a merchant account. Payment gateways typically charge a monthly fee, but some also charge per-transaction fees. By using a gateway that doesn’t charge these additional fees, you can save money on your overall processing costs.
Avoid long-term contracts
Some merchant account providers require their customers to sign long-term contracts, often with early termination fees. These contracts can be expensive and inflexible, so it’s best to avoid them if possible. Instead, look for providers that offer month-to-month billing with no contract. If you just need a merchant account for a short period, many providers offer pay-as-you-go plans.
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Get chargeback alerts
Chargebacks occur when a customer disputes a charge on their credit card statement. If you’re not careful, they can add up quickly and eat into your profits. To avoid this, be sure to sign up for chargeback alerts from your merchant account provider. This way, you can take action quickly to resolve any disputes and prevent them from happening again in the future.
Review your statement regularly
Lastly, be sure to review your merchant account statement regularly. This will help you catch any errors or discrepancies, and it will also help you keep track of your overall processing costs. By taking the time to understand your statement, you can make sure that you’re not paying more than you need to.
Conclusion
So there you have it! These are the 7 ways to reduce merchant account fees. By following these tips, businesses can save a significant amount of money on their payment processing costs. Make sure to do your research and compare different providers before signing up for a merchant account.
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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.
