Four Methods By Which Small Businesses Can Reduce Their Card Processing Fees

If you wish to avoid paying expensive credit card processing fees, you might find this information useful. According to small business owners, it is burdensome to pay high card processing rates. According to data from the Bureau of Labor Statistics, half of all startups fail within the first 48 months. According to forecasts, credit card volume would climb by 33% by the end of 2024. In contrast, cash payment volume will decrease by around 27%. Below is an explanation of several popular strategies for obtaining the best deal. Continue reading to find out more.

1. Utilize Merchant Services as opposed to a Bank

If you engage with the merchant service provider, you can process credit cards using their merchant account. Certain banks do offer merchant services. In actuality, the services are outsourced to third-party companies. Consequently, they end up charging you more for their services.

Consequently, if you utilize a merchant service provider, you will not need to move your clients and consumers to a different source. In addition, you can enjoy immediate protection against fraud. In actuality, more than 80 percent of firms fail due to cash flow issues.

2. Use a Payment Gateway that is PCI-compliant

A payment gateway is essentially a cloud-based software application that manages credit card processing. The purpose of this application is to facilitate credit card transactions. In addition, it establishes a connection between the card-issuing bank and the credit card network. After approval, the funds are sent from the customer’s credit card to the merchant’s account.

We are aware that this process contains sensitive information. Consequently, you may wish to employ a PCI-compliant payment gateway. This type of gateway is expected to utilize encryption and tokenization technology.

3. Combine your Payments

Instead of relying on an external software program for your payments, we recommend that you choose a service provider that offers the ability to handle transactions within your accounting software. The goal is to eliminate duplicate data entry and minimize human mistake.

If you integrate your payments, you will be able to automate the process and prevent all the pain and headaches associated with it.

4. Choose a personalized service

As a small business owner, your time is incredibly valuable. Therefore, we advise you to seek out a specialized firm that can manage the entire procedure. Statistics indicate that more than half of customers are unable to settle their issues if they cannot speak with a real person.

Therefore, we recommend working with a processing business that offers personalized client support. And this is of the utmost importance for entrepreneurs.

If you want to lower your credit card processing fees, we recommend trying these four strategies. According to statistical evidence, these techniques have helped small firms lower these fees by 21%.