If you don’t want to pay high credit card processing fees, you may find this article helpful. According to small business owners, paying high fees for card processing is overwhelming. Statistics released by the Bureau of Labor Statistics show that half of startups fail within the first 48 months. Credit card volume is forecast to increase by 33% by the end of 2024. In contrast, the volume of cash payments will decrease by around 27%. Below is a description of some common methods that can help you get the best deal. Read on to find out more.
1. Use merchant services instead of a bank
If you work with the merchant service provider, you can use their merchant account to process credit cards. Some banks offer merchant services. In reality, they outsource the services to third parties. As a result, they charge you additional fees for the services.
Therefore, if you use a merchant service provider instead, you don’t have to redirect your clients and customers to another provider. In addition, you enjoy direct protection against fraud. In fact, more than 80% of startups fail because of liquidity problems.
2. Decide on a PCI-compliant payment gateway
Basically, a payment gateway refers to a cloud-based software program that handles credit card processing. The role of this application is to support transactions made through credit cards. It also establishes a connection between the card-issuing bank and the credit card network. Once approved, funds are transferred from the customer’s credit card to the merchant’s account.
We know that this process involves sensitive data. Therefore, you may want to work with a PCI-compliant payment gateway. In other words, this type of gateway is said to use encryption and tokenization technologies.
3. Integrate your payments
Rather than relying on an external software program for your payments, we recommend that you engage the services of a vendor who will provide the means to process transactions within your accounting software program. The idea is to eliminate double data entry and reduce human error.
Integrating your payments allows you to automate the process and eliminate all the hassle and headaches in the process.
4. Opt for a personalized service
Your time is very valuable as a small business owner. Therefore, we recommend that you look for a personalized service that can handle the entire process. According to statistics, more than half of customers cannot solve their problems if they cannot discuss the matter with a real person.
We therefore recommend that you work with a processing service that offers personalized customer service. And this is of paramount importance for small business owners.
In short, if you’re looking to lower your credit card processing fees, we recommend trying these four methods. If you look at stats, you’ll see that these methods have helped small businesses reduce these fees by 21%.