Retail Credit Card Processing (2)

3 Ways To Reduce Or Avoid Credit Card Processing Fees

Retail Credit Card Processing (2)

Learn the perfect ways to avoid credit card processing fees that way you can potentially save hundreds of dollars.

As the years pass by, more customers are paying for their bills and other necessities through credit cards as it’s more convenient and beneficial than cash. You’ll find that there are very few retailers who do not accept online payments and credit card payments albeit they would need to shoulder a fee for each transaction that they make which is called payment processing fees.

The credit card processing fees that you get from transaction accounts are just tiny portions of the transaction value but when you combine all the transactions, what may have looked small, to begin with, may no longer be the case. To help lessen your financial woes we’ve compiled a few ways how you can reduce or avoid credit card processing fees. Sounds a little too good to be true? Then keep on reading:

Negotiating mark up fees with credit card processors 

Although you may not be able to negotiate the interchange and the assessment fees, you can, however, negotiate for the markup fee that is normally determined by the merchant account provider. Relatively higher volumes usually come with lower rates and when you present yourself as a value-added merchant with high transaction volumes, would be the best way to negotiate. 

Perhaps demonstrating your annual growth and presenting your expected sales in the coming years will be able to sway the payment processors into offering you a discount or better yet no credit card processing fees at all if the volume is large enough to negotiate with their suppliers.

Ensure that your merchant account and terminal are properly set up  

Depending on the unique characteristics of your business credit card processing fees can vary and as a result, providing incorrect business information or setting up your account inaccurately will greatly affect the structure of your credit card fees. To avoid this try the following:

  • Make sure that you have the right business type, transaction, and frequency.

  • Add a surcharge on credit cards, in which customers pay for the processing fee of their credit card transactions.

  • Set a credit card minimum on certain purchases to avoid high fees per small order value transactions.

 Your terminal settings can also affect the processing fee, as the more transactions you acquire the longer the wait time becomes which leads to heightened credit card processing rates and fees and that is something that we want to reduce or even lessen as zero-fee merchant processing may be hard to achieve but not completely impossible.

Payment processing from a POS provider you can trust

As a small business that is looking to reduce or completely avoid credit card processing fees, you may want to consider working with a provider that can help make arrangements for both your credit card processing and POS solutions such as, simplifying your payment processing and eliminating any additional costs like integration fees and fraud prevention fees. As long as you can find a way for your business to qualify for credit card processing discounts, you can lower the overall fees that may incur and possibly eliminate them altogether.

For so many businesses finding a zero-fee merchant processing POS provider is close to impossible as most credit card processing fees don’t come with a small expense. Negotiating your mark-up fee, increasing your security level, setting up standard accounts and terminals, and even implementing certain rules for credit cards to help you minimize your credit card processing cost will be able to save you a significant amount of cash.

But wait, what if you could find someone who could give you absolutely no credit card processing fees? We here at Savvy Merchant have the systems and tools to turn this impossible dream into a reality. Would you like to learn more about us and the opportunities that we can offer? Contact us today and we’ll be happy to help you save more on your next credit card processing transactions. 

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