With consumers increasingly opting to pay with plastic, finding ways to reduce the fees associated with credit payments is beneficial for business owners. To avoid paying more than needed for credit card processing fees, business owners should keep these four tips in mind.
Merchants should look very closely at the fee section of their statement to ensure they are receiving the full value out of all service. For example, there is the option of receiving paper statements and paperless statements, with different fees attached to both. Business owners should decide which method they prefer and eliminate the other. There is no reason to be paying two separate fees for the same statement!
Avoid Penalties – People, Process and Technology
The biggest penalty business owners pay is called a PCI non compliance fee which means they are paying a penalty for not protecting their business from fraud risk. This fee can be avoided by taking an online PCI certification. This certification is a 20-45 minute online questionnaire that provides information on how to protect a business against fraud. This questionnaire includes tips on how to train employees on the importance of protecting credit card numbers, sensitivity of personal information and how to ensure the right devices are being used to process information securely. It’s a way to look at the people, processes and technology of a business to ensure the methods of handling credit card information are secure. Often, businesses are paying penalties because they have not gone through the PCI certification.
Control Payments Accepted
Typically, debit cards are less expensive to process than standard credit cards, and rewards credit cards cost more than standard credit cards. Business owners should consider encouraging the use of debit cards versus credit cards. Training cashiers to ask for a debit card during check out or posting a sign encouraging the use of debit cards are easy ways of implementing this. Keep in mind, the use of credit cards cannot be restricted nor can signage be posted that states one form of payment is accepted but not the other. If a business agrees to accept electronic payments, all must be accepted.
Ran A Transaction? Batch Out.
Some business owners are under the impression that if they batch out once every few days, money is saved. This assumption is false. Bulking up transactions and batching out all at once can cost more. If a batch out is not performed on the same day the transaction was run, the charge becomes stale and more expensive to process. Not only does this delay the opportunity to gain funds but, it downgrades charges into non-qualified transactions. In the end, businesses are stuck paying more money for each transaction when compared to batching out on a daily basis. Most terminals can be set to auto batch at a given point and time each day, this can be easily set up with your processor.
The process of accepting and managing electronic payments efficiently can turn out to be less expensive than managing cash only transactions. These four simple tips can help business owners cut costs in the long run.
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