If you asked a big group of business owners where they thought their business could use improvement, they might not think of credit card processing. To most, credit card processing is one of those costs of doing business; the payment processing industry is dominated by crooks, and most of the time business owners simply try to come away with the least bad deal possible – sometimes entrusting their banks with the processing duties (and not coming out much better for it). But, there are three simple ways to cut down on processing fees that you may not have known about before. Save on Credit Card Processing fees 1
Tip #1: Use an accounting system plugin for your processing
Save on Credit Card Processing fees 2Even today, with a wealth of technology at our fingertips, sometimes barraging us from all fronts, some business owners aren’t aware of an accounting system they use, like QuickBooks, for example, can accept credit card payments itself. That is, you don’t have to process payments in a physical card terminal and return to your accounting software later to manually reconcile your invoices because a plugin adjusts all that for you.
For businesses accepting a good number of card transactions every day, this can result in a huge gain in productivity in the form of extra time at the end of the day. Using an accounting system plugin won’t always lower the dollar amount you pay in credit card processing fees, but it will more than makeup for the extra expense, if any, by speeding up your receivables by a big margin.
Tip #2: Utilize level III pricing
Save on Credit Card Processing fees 3If your credit card business is primarily B2B, you’re eligible for a pricing discount you may not have known about. Data level III pricing is the lowest tier of the pricing available for business-type credit cards and GSA cards, and it is attained when enough information is passed along with each transaction accepted on one of those types of credit cards.
There are scores of different types of business credit cards and government spending cards, but it’s safe to say that on average, level III processing can reduce the price of one of those types of cards from 0.5% to a full percent. Many businesses accept loads of these credit cards but simply don’t know about level III pricing – so, ask your processor if they can provide you a level III solution – and then you’ll really start realizing some savings. (Bonus: look for an accounting system plugin that can attain level III for maximum productivity and money savings.)
Tip #3: Don’t sign up for surprises – ask for a flat rate pricing program
Save on Credit Card Processing fees 4Most conventional pricing models for credit card processing include a laundry list of fees that are pretty meaningless. It’s not uncommon to be charged both a PCI compliance fee and a noncompliance fee, and, have you heard of the dreaded “integrity fee”? The fees aren’t usually consistent either, so it isn’t uncommon to have to adjust your plans to compensate for unexpected charges. The solution to this is simple, too – ask your processor for a flat rate price.
This moves your credit card processing onto the same plan you’re using to pay for electricity or water (but without the tiers based on volume), ensuring you always know what you’re being charged to run a given transaction, regardless of card type or anything else you do related to processing. Not having to brace yourself for an extra integrity fee every now and again probably won’t hurt either.