It’s a fact of business: Most customers want to pay with plastic, and that means most companies need to pay credit card processing fees to keep their customers coming back. While you can’t avoid credit card processing fees entirely without going “cash only” and driving business away, you can avoid excessive charges.

It’s important to do. While individual credit card processing costs are not high, they add up. The more sales you make, the more you’ll pay. In addition, these fees combine with authorization costs, assessment fees and related expenses, and it starts to add up.

Fortunately, there are a few ways you can avoid credit card processing fees that take an excessive bite out of your profits.

1. Get Serious About Fraud

You don’t want to be seen as a high risk for fraud, because it means you’ll be charged more in fees to make up for the risk. Rates set by credit card companies are higher for businesses that take more risks.

One good way to lower your risk with cards is by swiping most of them. Doing so is safer than keying in information and can lead to lower credit card processing. Today, you can use microprocessors or secure swipers on mobile devices to keep swiping convenient for everyone.

You can also cut your risk and your fees by validating each purchase with entered security information. Adding in a security code and billing ZIP code for each purchase takes just a few seconds but makes each transaction more secure.

2. Choose the Right Credit Card Processor

You won’t get lower credit card processing fees if you’re working with an overpriced payment processor or one who charges hidden or extra fees. Always compare providers before making a final decision to ensure you have the best program.

Look for credit card processors who have good rates and transparent pricing policies. Even then, talk to them about your needs. If you’re a security-conscious client with a high volume of transactions, keep in mind that processors want your business, which may give you some negotiating power.

3. Reduce the Occurrence of Mistakes

If you make mistakes in providing business information or send in the wrong transaction information, you’ll see higher fees. This easily avoidable mistake is usually caused by setting up an account, terminal or payment system incorrectly.

Always check to make sure your payment system is set up correctly, and double-check each month that you’re not being dinged for mistakes. In addition, process transactions regularly every 24 hours to reduce fees and the risk of mistakes.

4. Get Informed

Business owners have a lot to handle, so it’s no surprise that they leave payment processing to someone else. If you don’t understand your payment processor contract or don’t really know how payment processes work, you’ll likely overpay. Get curious and find out more!

If you’re looking for a credit card payment processor who will work with you to keep your fees low, contact Velocity Merchant Services for a free consultation to talk about your needs. Ask about our EMV chip card terminals and our rates, which are among the lowest in the industry.

Have questions?  Talk to one of our Small Business Specialists.

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