Credit card processing fees can pile up your business expenses considerably. If your business mostly accepts payments online, then getting rid of this expense is next to impossible. However, it is possible to bring down the excessive cost that your business incurs by following the strategies given below.
Negotiate with your credit card processors
Negotiation can help you greatly in reducing the credit card processing fees but before negotiating with the payment processors you must know about the different kinds of fees. Some fees are non-negotiable and some are negotiable. Therefore, before you call a payment processor you must know such key information to successfully close the deal.
The next obvious question that would pop up is - how to go about negotiating? The answer is simple; convince them that you contribute massively to their revenues. You can present the transaction volume because the more you sell the more transactions and the more you add to their revenues.
Reduce the credit risk fraud
Risk is the most important factor that is used to assess that what should be fees for credit card processing for your business transactions. The higher the risk of fraud posed by the merchant, the more is the credit card processing fee for those merchants.
Follow these two ways of reducing the risk of credit card fraud.
Provide security information to protect the cardholder and validate the purchase. This can be done to always enter the security code and ZIP code when asked.
Swipe cards even if you have the option to make a payment otherwise. This is because swiped transactions for sales will protect against chargebacks. After all, these sales are harder to dispute as they are made using an EMV chip in the card.
Retain maximum customer data
For payments made online by customers on e-commerce sites, it is beneficial to gather the cardholder’s billing address. You can leverage such details to bring down excessive interchange fees. This is because if more information is collected about the cardholder, then the interchange fee charged will decline.
Proper account set up
Simply ensuring that you have followed the right approach to set up and there are no discrepancies during the account setup can go a long way in reducing the credit card processing fees. The way your account is set up impacts your fee structure. Don’t let even a slight discrepancy that will later cost you high fees.
Research more on credit card processing fees and different payment processing organizations
This approach is by far the most beneficial approach to tackle high credit card processing fees. The research will help you to make informed decisions about which payment processor to choose. Also, you can look for the different fee structures of different organizations and accordingly choose the one that is best for you. You can look for ways to lower your credit card risk fraud that will eventually help to reduce the high credit card processing fees.