Do you currently use credit card processing services online? If so, you might not be saving all that you could with your merchant account credit card processing service. This article will outline some fast fee saving tips to reduce the costs of payment processing and ensure you are not wasting money per transaction.
7 Strategies to Save Money on Your Merchant Account
- If you process point of sale payments with your merchant account, be sure to check for a security match for the signature on the back of the card your customer provides you. If a signature is not provided, ask for additional identity verification, to prevent fraud. This small step can save you a fortune on your credit card processing statements. Fraud, charge backs and disputes account for dramatic increases in costs to the merchant. A typical merchant account provider will charge fees ranging from $25 to $45 for these costly fixes, resulting in skyrocketing costs.
- Be sure to remember to process any sales you receive on the same day they the transaction occurs. for point of sale stores using credit card processing terminals you do not want to wait to batch out your transactions for the day. Your processing fees increase for transactions older than 24 hours typically and can increase the percentage you pay in fees per transaction.
- For the lowest discount rates for transactions at a point of sale location, try to avoid typing in the credit cards numbers manually, but rather swipe the credit card with your terminal. If you swipe the card and it is not read properly, swipe it again, as a swiped credit card is typically given a lower discount rate per transaction and can save you money over many instances.
- Following the last principle for saving on credit card processing, if the magnetic strip is inoperable, and you are forced to key in the payment transaction, be sure to get an accurate zip code for the billing address of the card. A zip code that does not match properly the billing address of the card holder will increase your transaction cost.
- Provide very clear contact information for your business, and be sure to have your customer service phone number appear on the line item of the credit card statement. Customers often forget or do not recognize the line item description for a purchase, providing information to contact you rather than the credit card processing company. This occurs because customers are more likely to dispute a charge if they do not recognize and cannot contact the business from a line item charge on their statement, those fees add up.
- Follow your credit card processing terminal directions attentively when using it for payments. It will sometimes prompt you for additional information or have specialized instructions for the processing of some corporate credit cards or debit cards. Providing the information required can save you per transaction fees.
- Watch your merchant account statements carefully. As your business grows, or if you already accept large amounts of certain types of transactions you might be liable for a plan change and a reduction in your costs. for example discount rates can be reduced because your average purchase amount changes or you may be able to reduce costs by removing service for a type of card that you see so infrequently as to make it not worth the additional costs.
Start implementing these strategies for cost savings and you can be sure to start seeing a significant increase in profit and decrease in your coming credit card processing statements. There is no reason you to be paying more than you need to for your merchant account services.
Credit Card Processing - 7 Tips For Merchant Account Savings
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>p.o.s. Point of Sale? Yeah those do require perfection in input.