Credit Card Payment Processing

With everything you have to think about as a business owner, credit card payment processing fees may not be top on the list. While the fees might not seem like much by themselves, those small percentages taken for each transaction quickly amount to much. And when combined with authorization costs, assessment fees, among other monthly fees, the total can add up to a considerable amount. At Merchant Focus, we offer innovative point of sale solutions to streamline operations and make payments easy and convenient for your customers, all at competitive pricing.

Tips to Lower Credit Card Processing Fees

As a small business owner looking to remain competitive and profitable, ignoring credit card payments simply isn’t an option. Instead, you should look for ways to minimize processing fees. The following are tips to lower those fees:

Focus on Negotiable Fees

There are various moving parts in a single credit card processing transaction. There’s the payments network, payment processer, issuing bank, and acquiring bank. The percentage given to all the parties involved constitute your processing fee, and they are as follows:

  • Interchange Rates – Base cost for every card type merchants accept
  • Assessment Fees – Amount given to the payments network
  • Network Fees – The fixed monthly fee paid to the network
  • Authorization Costs – Cost to authorize as well as charge a credit card
  • Discount Rates – What the Processor charges to get a profit

The only negotiable fees are interchange and discount rates. As such, when negotiating with your processor, your main focus should be on those two rates. In addition, take time to shop around for a processor whose margin is smaller.

Choose the Best Pricing Plan

The three main pricing structures processors charge are flat rate, tiered, and interchange plus.

  • Tiered Pricing – This pricing structure charges different rates depending on the type of card your customer has. Every card falls in a pre-determined category.
  • Flat Rate Pricing – Here, you pay a fixed rate for every transaction, the card type notwithstanding.
  • Interchange Plus – This is where you pay a flat-rate percentage and an interchange reimbursement fee. Therefore, you’ll cover the cost of every card type and an estimated extra 0.25 percent.

You might realize that most customers opt to pay with the card that charges the least amount for every transaction, making the tiered pricing plan an ideal option. Also, you may find that the interchange plan is cheaper than the flat-rate plan.

At the end of the day, it’s important to understand all the pricing plans to choose the best one for you. And, studying the habits of your customers will also help you select the ideal pricing plan.

Have A Credit Card Sale Minimum

There's a good reason you may have noticed some businesses tell their customers to spend a particular amount to be able to use their credit cards. If a transaction is too small, the fees charged on processing the payment will eat into the profit. Having a card sale minimum might come with the risk of scaring off customers, but you can openly explain to customers in case they have a problem with it.

Boost Your Bottom Line

At Merchant Focus, we offer flexible solutions, including credit card payment processing. Whether you own a large e-commerce site or a small business, we have efficient merchant solutions to ensure you increase productivity and drive sales. We expand as you grow while keeping our rates at a price you can appreciate. To get started, call us today on 800-895-4085.