If you operate a business with a storefront, then you know how important card-swiping is to your customers. Like it or not, cash is no longer the king of payment methods. As convenient as credit cards are to consumers, the processing fees can hurt your bottom line if you’re not careful. If you’re wondering how you can lower these fees, then you’ve come to the right place! Here are 5 tricks you can use to do it.
5. Avoid PCI Fines By Staying Compliant
Payment Card Industry Data Security Standard (PCI) is a set of rules designed to minimize the risk of credit card data falling into the wrong hands. Credit card processing companies may impose a fee on merchants who fail to meet certain security protocols, which they’ll deem a “non-compliance” fee; however, since these fines do not follow a strict set of rules, the exact reason for them can remain ambiguous.
If you are being charged for being out of compliance, then first check to see if you were ever notified. If not, then you have a right to dispute the charge altogether. If you were informed of a PCI compliance issue, then check to see if you’ve completed a self-assessment questionnaire for the current year. All business owners must complete one annually. The form asks some standard questions about your business, like what security processes you follow, and what kinds of payments you take. For more information about PCI fees and the assessment form, check out Value Penguin’s guide.
4. Check Your Statement Regularly For New Charges
Credit card processing companies have the right to change your rates for any reason at any time; therefore, take some time to review your monthly statement. One red flag to watch out for are 30-day notices. This is typically the place where rate increases are introduced. Catching these changes within the 30-day window may allow you to negotiate with your local rep.
3. Increase ‘Card Present’ Transactions by Upgrading Your Technology
There are 2 types of credit card transactions: “card present” and “card not present.” “Card Present” is when the consumer uses their card in person, and “Card Not Present” is when the customer gives their card information over the phone or internet. Card Not Present transactions are more costly for merchants; therefore, one strategy is to offer payments in-person, wherever and whenever possible. To do this, consider arming field reps with mobile point of sale (POS) systems, like Clover mobile.
2. Offer Cash Discounts
Cash discounts allow you to shift your credit card processing costs onto your customers. With a cash discount, the customer is given a choice: if they make a purchase with a credit card, then they must incur the fee that it would cost you to process it.
1. Consult With a Reputable Company
Have you ever had your rates reviewed by a professional company? Turnkey Processing can help you find the most cost-effective way to take payments. Contact one of our experts today for a free consultation.