If you don’t want to pay hefty credit card processing fees, you may find this article helpful. According to small business owners, it is overwhelming to pay hefty fees for card processing. The statistics released by the Bureau of Labor Statistics tell that half of the startups fail within the first 48 months. According to predictions, there will be a 33% increase in credit card volume by the end of 2024. On the other hand, cash payment volume is going to go down by around 27%. Given below is a description of some common ways that can help you get the best deal. Read on to find out more.
1. Use Merchant Services rather than a Bank
If you work with the merchant service provider, you can use their merchant account for processing credit cards. Some banks do provide merchant services. In reality, they outsource the services to third parties. As a result, they end up charging you extra fees for the services.
Therefore, if you use a merchant service provider instead, you don’t need to redirect your clients and customers to another provider. In addition, you can enjoy direct protection against fraud. As a matter of fact, more than 80% of startups fail because they have cash flow problems.
2. Go for 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 conducted through credit cards. Apart from this, it creates a link between the card-issuing bank and the credit card network. After the approval, the 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 supposed to use encryption and tokenization technologies.
3. Integrate your Payments
Instead of depending on an outside software program for your payments, we suggest that you hire the services of a provider that provides a means to process transactions inside your accounting software program. The idea is to get rid of double data entry and reduce human error.
If you integrate your payments, you can automate the process and avoid all the hassle and headache in this process.
4. Opt for a Personalized Service
Your time is highly 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 cannot resolve their problems if they cannot discuss the matter with a real person.
So, we suggest that you work with a processing service that provides personalized customer service. And this is of paramount importance for small business owners.
In short, if you want to reduce your credit card processing fees, we suggest that you try out these four methods. If you look at statistics, you will come to know that these methods have helped small businesses reduce these fees by 21%.