Would you like to see your monthly credit card processing bill get lower? There are plenty of potential ways to reach that goal. Your bill includes items such as assessment fees and authorization cost, but the most common offenders are actually your credit card processing fees. Though they may not seem like much by themselves, these fees can add up to a hefty amount.
The reality is that credit card processing expenses aren’t something you can avoid. What you can — and should — do is lower them as much as you can. Here are 5 ways to do that.
1. Set Up Your Account the Right Way
By setting up your account properly from the start, you can avoid many mistakes that can lead to higher credit card processing fees in the future. Pay particular attention to the type of your business, type of transactions, and frequency of transactions. Your terminal can affect the fees as well, so consider reducing processing fees by processing transactions within 24 hours.
2. Reduce the Risk of Fraud
If you pose a high-security risk as a merchant, your processing fees will be higher as well. The best way to reduce the risk of credit card fraud is to swipe as many credit cards as you can. With new technology such as cell phone swipers, you don’t have an excuse not to do it. Keep in mind that Visa and MasterCard set their rates depending on fraud risk.
3. Negotiate With Credit Card Processors
In negotiations with processors, your main goal is to present yourself as a merchant that adds value. You can do that by leveraging your transaction volume. With enough transactions, the vendor will be more interested in your business. With some luck, they’ll be able to lower their overhead in certain areas, which makes it more likely they’ll lower your rates in return.
4. Use an Address Verification Service
An address verification service (AVS) is a system that can verify the cardholder’s billing address. This feature makes it an excellent tool in fighting fraud, especially when it comes to limiting chargebacks in e-Commerce. Visa and MasterCard both support AVS, and Visa even provides lower interchange rates if merchants perform an AVS check on their transactions.
5. Consult With Experts
If you want to gain a better understanding of card processing, contact an expert like one of the team members at MONA Solutions. Working with a professional can help you navigate the sometimes confusing world of credit card processing, and help you make the best arrangement for your particular business. For example, did you know that all credit card processors buy their rates from Visa, Discover, and MasterCard for the same price? This allows them to resell these rates to different businesses at the same fee. Being aware of insider information like this can help you gain an edge with vendors.
If you would like to learn more about lowering your credit card processing expenses or would like to receive a processing review, please get in touch with our office.