If you don’t want to pay high credit card processing fees, this article may be helpful. According to small business owners, paying high card processing fees is huge. Statistics from the Bureau of Labor Statistics show that half of all new businesses fail within the first 48 months. According to forecasts, the volume of credit cards will increase by 33% by the end of 2024. In contrast, the number of cash payments will decrease by around 27%. Below are details of some common methods that can help you get the best deal. Keep reading to learn more.
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Use merchant services instead of the bank
If you work with a merchant service provider, you can use your merchant account to process credit cards. Some banks offer business services. In fact, they outsource the services to third parties. As a result, they charge extra for the services. So, if you use a merchant service provider instead, you don’t need to redirect your customers and clients to another provider. In addition, you can benefit from direct protection against fraud. In fact, over 80% of startups fail because they run out of cash.
Choose a PCI Compliant Payment Gateway
Basically, payment gateway refers to cloud-based software that handles credit card processing. The role of this application is to support transactions made by credit cards. In addition, it is the link between the card-issuing bank and the credit card network. After approval, funds are transferred from the customer’s credit card to the merchant’s account. Sensitive data is involved in this process. Therefore, you may want to work with a PCI-compliant payment gateway. In other words, this type of gate must use coding and coding techniques.
Consolidate your payments
Rather than relying on external software for your payments, we recommend using the services of a vendor that provides a way to process transactions within your accounting software. It aims to eliminate double data entry and reduce human error. You can automate the process and avoid all the hassles and headaches associated with the process.
Choose a personalized service
As a small business owner, your time is very valuable. Therefore, we suggest you look for a dedicated service that can handle the whole process. According to statistics, more than half of customers cannot solve their problems if they cannot discuss them with a real person. So, you work with a processing service that provides personalized customer service. This is very important for small entrepreneurs.
The Final Thoughts
If you want to reduce your credit card processing fees, we suggest you try these four methods. If you look at the numbers, you’ll know that these methods have helped small business owners reduce those costs by up to 21%.