When it comes to running a business, there is nothing that doesn’t cost money. Often, it takes money to make money. The same, largely, goes for payment processing. Whenever a business accepts a credit card payment, you will need to pay a fee of the sale’s price. This is the cost of using the payment processor’s electronic payment services.
You will always have to pay some type of fee, but there are ways that you can lower this fee with a few shrewd and smart strategies. Here are some tips and tricks that you can use.
Implement Cash Discount
A customer-friendly solution that can help in greatly reducing your payment processing fees is to roll out a cash discount program. This means giving customers a discount when they pay in cash. The standard price is the cost of your goods if customers were to pay with a credit card, but you apply a discount for cash customers. This is a great way to cut costs if you are a business that operates a brick-and-mortar location.
There might even be some cash discount programs that are beneficial to both your customers and your business. The best way to explore a cash discount program is to work with an experienced payments provider that knows how to help businesses grow. They will be able to place your business into a cash discount program tailored to your business and needs.
Speak with Your Credit Card Processor
One of the best ways to work on cutting your payment processing fees is going directly to your processor and working with them to understand the best fee structure for your business. Asking about different programs could be a good way to go about understanding the options that might help to reduce your fees by a percentage point.
It is always advisable to consult a payments professional that can best direct you and potentially reduce your fees.
Surcharging is the business practice of passing along the costs of credit card fees to your customers. This means including a small percentage fee to all transactions that involve a credit card. This can be a controversial approach, depending on how your customers are made aware of the surcharge fee. If you decide to implement surcharging, make sure you pay close attention to the instructions on how you must make your customers aware of the surcharge fee being implemented.
Understand Fee Structures
Like any element of your business, it is advisable to educate yourself, so you know how various elements work together. When it comes to payment processing, understanding the fee structure can be somewhat confusing with how some structure costs. It is essential to understand the fee structures of different processors and how they impact your overall costs. So, it is crucial to consult with providers that are trusted and transparent in how they outline their fees – making it easy for you to understand areas for growth for your business.
Cutting payment processing fees requires a strategic and informed approach. If you, like most business owners, are busy focusing on growing your business and driving sales, it can be beneficial for you to work with someone who is as invested in your business’ growth as you are. A trusted payments professional is going to act as a strategic consultant that will give you direction to programs that can help put you in programs that are tailored to the unique needs of your business – while helping you realize some areas of savings, so your business operational costs are optimized. Work with the best payments processing advisor and you can get into the best program for your business that will help you reduce your payment processing fees.