How Businesses Can Lower Credit Card Processing Fees

Accepting debit and credit card payments is a necessity for business owners. But before they can accept such payments, business owners need to open a merchant account. 

The payment processor will help business owners process purchases, while the merchant account allows them to accept electronic payments. 

Choose The Best Credit Card Processor 

First and foremost, business owners need to choose the best credit card processor. They should not sign on to a payment processor just because they are familiar with them or referred by friends.

Negotiate Your Credit Card Processing Fees

Go over the credit card processing statement to discover fees that can be lowered before contending with your processor. Keep in mind that when negotiating, knowledge is power. 

Keep Chargeback Rate Low

Business owners can also lower their credit card processing fees by keeping the chargeback rate low. If business owners want to maintain a good account relationship with processors, they must keep the chargeback percentage below one percent.

Utilize Technology

For example, use an online shopping cart on your website to accept credit card payments. It will eliminate the need for an order form and help cut paper costs, printing fees, postage, and other factors that can add up over time.

Use The Right Payment Gateway

A payment gateway serves as an intermediary between a merchant account and card brands like MasterCard, Visa, Discover, and American Express.

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