If you’re a business owner looking to minimize your credit card processing fees, here are eight ways you can get the lowest rates:
- Shop around: Compare rates and fees from multiple credit card processing companies to find the one that offers the best value for your business.
- Negotiate: If you have a high volume of credit card transactions or a large average transaction size, you may be able to negotiate a lower rate with your credit card processing company.
- Use a flat-rate processor: Some credit card processing companies offer a flat rate for all transactions, regardless of the type of card being used or the size of the transaction. If your business has a relatively low volume of transactions, a flat-rate processor could be a cost-effective option.
- Consider alternative payment methods: Some alternative payment methods, such as PayPal or Stripe, can be cheaper than traditional credit card processing. These options may not be suitable for all businesses, but they’re worth considering if you’re looking for a lower-cost option.
- Use a prepaid card program: Prepaid card programs allow businesses to load funds onto a card and use it to pay for goods and services. These programs can be a cost-effective alternative to traditional credit card processing, as they often have lower fees and no risk of chargebacks.
- Choose the right credit card terminal: Some credit card terminals are more expensive to use than others, so it’s important to choose a terminal that meets your needs without breaking the bank.
- Reduce chargebacks: Chargebacks can be costly for businesses, as they often come with fees and can also result in lost sales. To minimize chargebacks, make sure to clearly communicate your return policy to customers and resolve any disputes as quickly as possible.
- Review your fees regularly: Credit card processing fees can change over time, so it’s important to review your fees regularly to make sure you’re getting the best deal. If you find that your fees have increased significantly or you’re no longer getting good value for your money, consider switching to a different provider
What are the most common credit card fees
There are several types of credit card fees that businesses may encounter when accepting credit card payments:
- Transaction fees: These are fees that are charged every time a business processes a credit card payment. Transaction fees are usually a percentage of the total transaction amount, plus a fixed amount (e.g. 2.9% + $0.30).
- Monthly fees: Some credit card processing companies charge a monthly fee for their services, which can range from a few dollars to several hundred dollars depending on the provider and the specific terms of the agreement.
- Interchange fees: These fees are charged by the credit card issuer (e.g. Visa, Mastercard) and are a percentage of the total transaction amount. Interchange fees are generally beyond the control of the credit card processing company, and they are typically passed on to the business as part of the overall transaction fee.
- Assessment fees: These fees are also charged by the credit card issuer and are a fixed amount per transaction. Assessment fees cover the cost of operating and maintaining the credit card network.
- Chargeback fees: If a customer disputes a charge on their credit card and the business is unable to resolve the issue, the credit card issuer may reverse the charge and issue a chargeback to the business. Credit card processing companies often charge a fee for handling chargebacks.
- Termination fees: Some credit card processing companies charge a fee if a business decides to cancel their account before the end of a contract period.
Merchant account providers often charge high markups and hidden fees, making it difficult for businesses to get the best value for their money. If you’re looking for a better solution, consider Xccept.com. As a company, Xccept.com prides itself on offering transparent, subscription-based credit card processing at a direct cost, with no markups, hidden fees, or contracts. This means you’ll always know exactly what you’re paying for, and you won’t be locked into a long-term contract if you decide to switch to a different provider. If you’re looking for the lowest credit card processing fees, Xccept.com might be the solution you’re looking for. Contact the company today to learn more about their services and how they can help your business save money. get you started.
