If you don’t want to pay high credit card processing fees, you may find this article helpful. According to small business owners, it’s overwhelming to pay hefty fees for card processing. Statistics published by the Bureau of Labor Statistics indicate that half of new businesses fail in the first 48 months. According to forecasts, there will be a 33% increase in credit card volume by the end of 2024. On the other hand, the volume of cash payments will decrease by around 27%. Below is a description of some common ways that can help you get the best deal. Keep reading to know more.
1. Use merchant services instead of a bank
If you work with the merchant service provider, you can use your merchant account to process credit cards. Some banks provide merchant services. In reality, they outsource services to third parties. As a result, they end up charging additional fees for services.
So if you use a merchant service provider instead, you don’t need to redirect your customers and customers to another provider. In addition, you will be able to enjoy direct protection against fraud. In fact, more than 80% of startups fail because they have liquidity problems.
2. Choose a PCI-compliant payment gateway
Basically, a payment gateway refers to a cloud-based software program that handles credit card processing. The function of this application is to support transactions made through credit cards. Apart from this, it creates a link between the card issuing bank and the credit card network. After approval, the funds are transferred from the customers’ 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 supposed to use encryption and tokenization technologies.
3. Integrate your Payments
Rather than rely on a third-party software program for your payments, we suggest that you use a vendor that provides a means to process transactions within their accounting software program. The idea is to get rid of double data entry and reduce human error.
By integrating your payments, you can automate the process and avoid all the hassles and headaches in this process.
4. Opt for a Personalized Service
Your time is very valuable as a small business owner. Therefore, we suggest that you look for a personalized service that can handle the entire process. According to statistics, more than half of customers can’t solve their problems if they can’t discuss the matter with a real person.
Therefore, we suggest that you work with a processing service that provides personalized customer service. And this is of the utmost importance for small business owners.
In summary, if you want to reduce your credit card processing fees, we suggest you try these four methods. If you look at the statistics, you will come to know that these methods have helped small businesses reduce these fees by 21%.
