First Card Payments > How To Guide  > Merchants Guide: How to Lower Credit Card Processing Fees

Merchants Guide: How to Lower Credit Card Processing Fees

As a business owner, you have a lot on your plate, which is why it’s not surprising if you overlook small details like credit card processing fees that might not seem significant due to their small amount.

But when you stop and think about it, these small amounts that credit card processors take for every transaction can balloon into a huge amount, especially when combined with assessment fees, transaction fees and other monthly charges on your account.

Of course, you cannot get rid of credit card processing fees altogether, but here are some tips to offset them:

Discuss the issue with your credit card processor.

Talk to your credit card processor about how you can offset some charges on your account to save some money. This is when it really counts to be a good merchant because if a processor sees you as someone who can add value to his business, he will have no problems negotiating processing fees with you. More often than not, payment processors offer two options to help offset credit card processing fees:

  • Cash discount program

A cash discount means that you’re offering a discount on a credit card price if the consumer pays it with cash. This may not make a huge difference to your savings but that can add up to a significant amount while making sure that you’re still complying with the rules of Visa and MasterCard when processing payments.

  • Credit card surcharge fee program

In this option, you are posting a “cash money” price with an additional fee for customers who will pay using their credit cards. This means that if the customer pays using his card, he is paying more than the listed price, which gives you some significant savings in the long run.

Whatever you choose, make sure that you stick within the rules of Visa and MasterCard to avoid incurring penalties or getting your merchant account closed.

Mitigate the risks of credit card fraud.

Cases of credit card fraud are increasing by the day and that could hurt your business too. So if you want to offset some processing fees and protect your business interest altogether, you can’t go wrong with investing in the right tools to help you mitigate the risks of credit card fraud.

According to experts, there are two smart tricks to reducing credit card fraud—swiping as many cards as you can and entering security information. Use tools like mobile phone swipers and microprocessors to swipe cards and always let consumers provide security information before they can proceed with the transaction to make sure that it’s not from fraudulent activities.

You can even go one step further by investing in an address verification service (AVS).

Running a business means constantly finding ways to improve your processes and ultimately save money, especially in these trying times. Follow these tips and see the huge difference that they will make not only to your bottom line but also to your efficiency as a high risk merchant account holder.

Ryan Kemp Zulu Shack Creative
( Director of Digital Marketing )

I am passionate about delivering results and helping my clients succeed. With my expertise in SEO, branding, and marketing, I lead the agency’s efforts to create and implement effective strategies that drive business growth. Our all-inclusive approach sets us apart from other digital media companies and ensures that our clients receive the full range of services they need for online success. If you can think of it, we can build it!

Zulu Shack Creative team members thrive on momentum. Like Zulu warriors, we strive to spearhead your idea with speed and quality.

When I’m not helping my team implement new digital marketing strategies, I enjoy playing music, hosting poker nights, reading Stephen King novels, and spending time with my wife and baby daughter.

No Comments

Sorry, the comment form is closed at this time.

First Card Payments