This article may be helpful if you’re looking for ways to reduce credit card processing costs. Owners of smaller establishments or websites such as Casino say that the burden of high credit card processing costs is too much to bear.
According to data from the Bureau of Labor Statistics, half of all startups close their doors during the first two years of operation. By 2024’s close, it is expected that credit card volume will have increased by 33%.
However, the number of cash transactions will decrease by about 27%. Some popular strategies for maximizing your bargaining power are outlined below. Keep reading to learn more.
Avoid banks and, instead, use merchant services.
A merchant account is a financial institution that allows you to accept credit card payments from customers on behalf of a business. It’s true that certain banks provide merchant services. In reality, they hire other companies to perform these tasks. This results in you paying more than necessary for the services offered.
If you employ a merchant service provider, customers and clients are not diverted away from your business. It also provides immediate safeguards against fraud. More than 80% of new businesses fail due to insufficient funds.
Select a Payment Card Industry–compliant gateway
Said a payment gateway is a service or software that processes payments online. This program’s function is to back up purchases made with credit cards. In addition, it establishes communication between the issuing bank and the credit card processing system.
Customer credit card payments are processed and deposited into the business’s bank account once permission is received.
We are aware of the delicate nature of this procedure. As a result, it’s recommended that you find a payment processor that follows PCI standards. That is, this gateway should utilize encryption and tokenization methods.
Merge Your Financial Transactions
Suppose you’d rather not have to deal with the hassle of dealing with third-party payment processing software. In that case, we recommend engaging the services of a supplier that allows you to handle all your financial dealings without ever leaving your accounting software. The goal is to eliminate the need for dual data entry and minimize human mistakes.
You can streamline the process through payment integration, eliminating the need for manual intervention.
Choose an Individualized Approach
As a business owner, your time is more precious than gold. As a result, we advise you to seek a specialized agency to manage everything for you. The inability to speak with a human being is cited as the cause of frustration for over half of clients.
If you want to avoid generic responses from a processing service, we advise finding one that caters to each client. This is of utmost significance to those who run their businesses.
In a nutshell, it is encouraged to utilize these four strategies for lowering your credit card processing costs. From the data, we can deduce that using these strategies has helped decrease these costs for small enterprises by 21%.