How to Eliminate Credit Card Processing Fees
Running a business comes with enough expenses without having to give a cut of your profits to your credit card processors. Credit card processing agreements come with a variety of fees, all written into your merchant contract. What a lot of business owners don’t know, however, is that credit card processing fees can be dramatically lowered with just a little bit of effort from the business owner. Use the following five steps to start lowering your credit card fees today.
1. Educate Yourself and Read your Merchant Processing Contract
The first step to lowering your credit card processing fees is an easy one. Educate yourself. They say knowledge is power, and it’s true. Start by reading up on what credit card processing fees exist, how credit card processing merchants work, and what kind of credit card transactions are most expensive. Once you are armed with information, dive into your merchant processing contract. Now that you understand how credit card processing fees work, you can identify what hidden fees are impacting you and how to eliminate them or lower them. Once you’ve read your credit card processing contract, read the SilverEdge article on “Identifying Important Criteria in Merchant Processing Contracts,” which will help you highlight additional fees that you should be on the lookout for in your contract.
2. Reduce Fraud
Once you’ve eliminated and/or lowered fees from your credit card processor, look into how you can reduce fraud. You might think you’re the only individual impacted by fraud in your business, but your credit card processor can be caught in the line of fire as well. If your business is targeted for fraud, your processor is also at risk to lose their profit. To reduce fraud you need to both review the technology your business uses and train your employees on some best practices.
Reducing Fraud with Technology
Your Point of Sale (POS) System can help you reduce fraud for your business in a few ways. First, make sure that your credit card terminal is set up properly and according to your credit card processors requirements. A simple mistake can increase your credit card processing fees drastically. Second, learn what security features your POS system has to protect against fraud as well as detect it. Check to see if your POS system provides encryption and tokenization, which can minimize the risk of data breaches for your business. Next, learn how your POS system checks for discrepancies when running a credit card.
Reducing Fraud by Training Your Staff
Your staff is one of your most important tools in the fight against fraud, as they are first in line when interacting with fraudsters. Train your staff to always ask for ID when running a credit card, check the signature, and enter in the CVV number and expiration date during every transaction. These small actions can be huge factors in the fight against fraud.
3. Negotiate with Your Credit Card Processor
Even though it might not seem like it, your credit card processing fees are not set in stone. You have the opportunity to negotiate with your credit card processor to lower your fees. The best negotiation to make with your credit card processor is to leverage your transaction volume. Why? Because the more you sell, the more money your credit card processor makes. So the more transactions you give them, the more they can lower overhead for you in different areas. Get in contact with your credit card processor and see how they can lower your rates to benefit both your business and their profit.
4. Evaluate Your Credit Card Processor
Not all credit card processors actually process transactions themselves, which means that you could be paying increased fees. Save on credit card processing fees by looking into your credit card processor and making sure they complete their processing in house. Most banks that still do on-site processing are the larger, big-box banks.
This change doesn’t mean you need to change who you bank with entirely. Instead, you can keep your deposits at whichever bank you prefer (big box or local) and have your credit card processor deposit the funds there.
5. Participate in SilverEdge’s Cash Discount Program
After you have completed the first four steps to eliminate credit card processing fees, you can finalize your strategy to eliminate credit card processing fees by partnering with SilverEdge. SilverEdge created the Cash Discount Program which helps their clients incentivize their customers to pay cash. By signing up with the Cash Discount Program, you can offset your credit card processing fees and earn cash back in three easy steps.
- Whether you are already a SilverEdge client or still need to sign up, just give SilverEdge a call at 970-999-1442. Or, you can learn more about the program by clicking here.
- The Technical Support Team will have you up and running within minutes.
- You’re all set! You’ll increase your bottom line by offsetting your merchant processing fees. The program will help you incentivize your customers to pay in cash by charging a small service fee to customers who pay by card.
Does your POS offer your business the support you need? Are you ready to simplify your business with the use of a new POS? SilverEdge can help. If you are ready to talk with a SilverEdge representative about the right choice for your business, contact 970-800-2890 or email firstname.lastname@example.org today.