Although having a business is rewarding, handling all associated costs can also be challenging. Therefore, an entrepreneur must embrace methods to save money whenever feasible.
You can start by lowering your electronic payment processing costs. According to a recent US report, small businesses pay the highest online payment processing rates and are increasingly fed up. What if you could reduce or eliminate some costs? Below are nine ways to do so.
Apply a surcharge
The most straightforward approach for avoiding paying processing costs is to pass costs on to your customers. Merchants must follow various standards related to surcharging. Therefore, compliance is critical. For example, retailers cannot overcharge a debit or rechargeable card, so your consumer can skip the extra charge. Also, not all states permit surcharging. Thus, due diligence is required to assist you in complying, whether it’s rigorous research, adopting specific software, or something else. As businesses aim to reduce expenses and more states relax their surcharging regulations, we anticipate more shops pass on processing fees to customers in the future.
Become PCI compliant
Guidelines like the PCI data security standard are there to safeguard your sensitive credit card information. Processors frequently offer new merchants a specified time for becoming PCI compliant, usually sixty to ninety days. Processors charge retailers a recurring non-compliance fee after this period. Ensuring your company is PCI-compliant saves you money and decreases the likelihood of cyber threats. As an extra benefit, many PCI providers provide breach protection, which may cost up to $100,000 and serve as insurance if your customers’ credit card information is exposed.
Reduce the risks of credit card fraud associated with payment processing
When your company is at high risk of credit card theft, you will incur increased payment processing rates. The easiest approach to avoid this is to identify strategies to lower the risk factor. For example, you might accept more payments in person. You can ask your clients to input their zip code or CVV if you wish to allow more electronic payment processing. This approach will make it easy for the payment provider to validate the transaction. As a result, you’ll have less of a possibility of handling chargebacks.
Remove payment processing equipment
If you decide to reduce fraud with credit cards by accepting more payments in person, you don’t necessarily have to pay for processing payment equipment. Payments, such as contactless payments, can be processed remotely using a cloud-based gateway. All you need is an intelligent device, a smartphone, tablet, or desktop computer, so feel free to consider this. You insert the customer’s payment card information, and payment is completed.
Keep an eye on your statements
Making time to study your account regularly is one of the most straightforward methods to lower monthly costs. Regrettably, many processors steadily raise their prices over time, particularly at the turn of the year. Pricing adjustments are usually stated on your bill, but company owners frequently ignore them. Detecting these changes allows you to discuss terms with your present processor or discover another payment provider more suited to your company’s needs.
Enquire from your processor
If you want to save costs but aren’t sure where to start, meet with your processor, as they know the finer points of your fee schedule. They can provide the finest advice based on your company’s demands and current industry status. The good thing about this is that you have little to lose by making that polite phone call. You could talk to your processor about a smart cost saver or a discount for your loyalty, so feel free to consider this.
Avoid firms that charge unnecessary charges for payment processing
Reading the tiny print of the contract you signed with your payment processing firm can reveal whether you are paying more than you should. Regarding processing fees, a good number of payment gateways are secretive. One thing to look for in the print is the non-processing costs. This item covers non-transactional expenditures such as PCI non-compliance fees, terminal rental, account maintenance, and minimum processing fee. Others include the statement fee, PCI non-compliance fee, PCI annual fee, and regulatory product fee. It is always ideal to choose a low-transaction costs payment processor.
Optimize your checkout process
Optimizing your checkout experience is critical for lowering cart abandonment and payment processing expenses. A seamless and speedy checkout procedure is worthwhile in terms of client retention, cart abandonment, and payment processing expenses. You might motivate customers to finish their purchases without hassles or frustrations if your checkout is simple, quick to use, and contains several payment alternatives. Creating a streamlined checkout process can also help reduce the risk of lost sales due to payment processing errors or delays, which can result in additional fees. Additionally, understanding Blockchain tools, such as Cardano’s price for the day, can help reduce transaction costs by eliminating the need for intermediaries, such as banks, and streamlining the transaction process.
Consider flat-rate pricing options instead of tiered processing rates
Consider using flat-rate pricing options to reduce your online processing charges. A flat-rate processing system charges you a consistent rate for each transaction regardless of the card type or processing volume. It can lead to greater transparency and predictability in your fees, making it easier to budget for payment processing costs. In contrast, tiered processing rates can often be confusing and lead to unexpected fees, as pricing can vary depending on transaction types and volume. By switching to a flat-rate system, you may save on processing fees and simplify your payment processing system overall. Researching and comparing different payment processing options is essential to determine which pricing structure is best for your business and avoid surprise fees that could increase processing charges.
Applying these nine strategies will help you lower the expenses connected with online payment processing. Are you a small company owner or person looking to save money on internet purchases? Why not try these methods to assist you in keeping more of your hard-earned money?