Credit card processing can be intimidating for small and medium sized businesses because of the costs associated with it. There are so many underlying fees involved in the process that it becomes difficult to comprehend. Most business owners are not even aware of all the components of cost, let alone the parts they can control. It is possible to bring down the total credit card processing cost but that requires an understanding of how exactly payment processors charge their clients. Spend time reading the statement of charges issued by the processor. You can also ask the company to explain the difficult terms and even suggest ways to reduce some of the fees.
Seasoned business owners would tell you that processing fee up to 3% of the credit card sales is reasonable. However, more than this amount is way too high and you should immediately change your payment processor if that’s the case. There are tons of credit card processors available now so you have a choice of selecting the one that offers the lowest rates and a fairly good service. Usually the intermediary involved in credit card processing charges extra fees, which is not necessary because you can do business with large processing companies directly without the need for an intermediary.
There are certain types of credit card transactions that cost less, for example if Visa or MasterCard transactions are settled within a day, they will not be subject to higher rates. There are special programs offered to Visa and MasterCard card holders that allow owners to save up to 1% on every transaction. These rates are offered to registered B2B and B2G credit card processors. You can advertise on your website about special transactions that will help you save money.
Some companies offer additional features like gift card processing that charge extra fees. If you don’t need these features, you can have those disabled and save on credit card transaction costs. Moreover, there is an early-termination fee charged by some companies if you wish to switch to another merchant services provider before the agreed time.
Business owners now have a chance to reduce credit card transaction costs and at the same time donate 10% of each transaction to their favorite charitable cause. Process Green™ is a for-profit merchant services provider that offers custom services to its customers and even allows them to choose or recommend a nonprofit organization they wish to support. By utilizing their payment processing service, you can automatically get lower rates without having to go through the tough steps mentioned above.