Basic Tips To Reduce Card Acceptance Cost

By Shirley Schmidt


People could pay using credit or debit cards instead of cash because of its convenience and they feel safer bringing it than real money. Studies also show that customers tend to buy more than what they intended when paying with this method. Because of these, many establishments are accepting this mode of payment to reap from its benefits in Atlanta, GA.

A huge infrastructure is required for handling payments all these transactions and the processing fee is paid for by the owners of the establishments like yourself. This, together with your other monthly payments, can add up to a meaningful expense that your business will have. This is the reason that merchants are searching how to reduce card acceptance cost Atlanta GA such as these.

Negotiate with the card processors by letting them see that your business can add more value to theirs. This can be done by having numerous transactions in your establishment which they can use to negotiate with their suppliers. When you give them more that they can use to negotiate then when they succeed with the negotiations, then they could also accommodate your request and lower your fee.

A direct proportion is there between the processing fee and the risk of having fraudulent transactions, which means the fee is higher when there is higher risk. You can reduce this by letting customers swipe their cards or enter their security information when paying for their purchases. When the cards are keyed in instead of having them swiped during transactions, there is a higher risk making the fee higher.

The risk is also lowered when you enter a security information to protect the cardholder and in validating the purchase. Providing the billing zip code or security zip code are ways of effectively doing it. Not doing this process would increase the risk of fraud which in turn increases your fees for transacting cards.

It is better to sign up with banks doing their own processing rather than those card processors so you could save on some fees. Most local and small town banks outsource this process to the bigger ones and does not do it themselves. You could still use these smaller ones to keep your deposits by letting your funds be deposited there by the big ones.

Provide the correct business information when setting up your account to avoid higher card processing fee. The information regarding the business type, transaction type and frequency is important in determining what you have to pay. Processing them every day is more cost effective than every after few days due to having lower fees with lower number of transactions.

You should consult with experts that could help you understand regarding card processing more and might help to get lower rates from some processors they know. An insider information by someone you know is helpful as a leverage during negotiations. Switching from a processor to another is unnecessary to have some savings.

Read the contract properly before signing it so you would be aware of all the fees they are asking. Determine the terminal functions you would use and avoid installing those that you will not so you would not pay for them. Some cards cost more to process so identify them and the qualifications needed to offset this.




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