You're a small business owner, not a big box retailer - and that's a great thing; you're a real person, and people want to buy from you! You have the freedom to choose your working hours, modify your business' direction and work with others. However, you likely don't employ a huge accounting department and may be paying more than you need to in credit card fees.
You put lots of work into creating an enjoyable buying experience. But, adding card fees at the checkout can slow down your customers or even discourage them from making a purchase. What's more, surcharging isn't legally available in every state. This leaves you either writing off processing fees as a business expense or somehow passing the fees onto your customers and potentially scaring them away.
If credit card processing fees are eating into your bottom line, here are three simple ways to lower your credit card processing fees:
1. Change your merchant account
Traditional merchant accounts are expensive, and budgeting for the cost is near impossible. Most business owners never crunch the numbers to see whether the grass could be greener somewhere else. You may find lower card processing rates with other providers; you just need to ask for the right pricing. So shop around and find a better account!
2. Negotiate a flat, predictable rate
The problem with traditional accounts is that you have long waits to get your money and the costs go up with sales volume. One strategy is to negotiate for one flat, predictable rate so that your business can grow without being hampered by hidden costs.
3. Offer discounts for cash
If you have a physical retail store, you can price the credit card fees into all your products across the board. That way, instead of penalizing your card-paying customers, you can offer a discount for customers who pay in cash. By offering discounts for cash, your card-paying customers won't even know they are paying the convenience fee as it is built in and those who can pay in cash will love the discount!
If credit card fees seem like a necessary evil, hopefully, one of these three options will help your business grow. If you still feel overwhelmed by your credit card fees, we recommend contacting GiftLogic. Although they sell retail point of sale software, they also have a great team who can help you lower your credit card fees.
