As a small business owner, you're no stranger to the various costs that come with running your business.
However, one cost that may surprise you is the issue of high credit card processing fees.
Credit card processing fees can add up quickly and have a significant impact on your bottom line.
Today, we’re taking a look at the issue of high credit card processing fees for small businesses, the impact of these fees on small business owners, and solutions for reducing credit card processing fees.
The issue of high credit card processing fees for small businesses:
When accepting credit card payments, businesses are required to pay a fee to the credit card processing company and additional fees to the card-issuing bank.
These fees can vary depending on factors such as the type of card, transaction amount, and the processing company used.
Unfortunately, small businesses often end up paying higher fees than larger businesses due to the lack of negotiating power and lower volume of transactions.
The impact of these fees on small business owners:
High credit card processing fees can greatly affect the financial performance of small businesses.
These fees can eat into profits, making it difficult for small businesses to stay competitive and keep their doors open.
Additionally, these fees can make it challenging for small businesses to offer competitive prices for their products or services, making it harder to attract customers.
Solutions for reducing credit card processing fees:
- Understand your fees: The first and most important step in minimizing credit card processing fees is understanding the fees being paid. Review your merchant services agreement and ask your processing company for a comprehensive and transparent breakdown of your fees.
- Negotiate with the processing company: Once you understand your fees, negotiate with your processing company. You may be able to negotiate lower rates, especially if you have a high volume of transactions.
- Shop around: Compare fees from various processing companies to find a more cost-effective option.
- Consider flat rate processing: Instead of paying a percentage-based fee per transaction, consider using a flat rate processor, which charges a fixed rate for each transaction, regardless of the amount.
- Consider a dual-pricing or surcharge program: Consider moving your payment processing to a dual-pricing or surcharge program.
A surcharge program helps merchants pass the payment processing costs to the customer in a transparent and fully compliant manner. In other words, for each item you sell, your business avoids the expense of credit card processing fees while customers pay a little extra.
As a small business owner, it's important to be aware of the costs associated with credit card processing.
High credit card processing fees can greatly affect your bottom line, but there are solutions and alternatives available to help reduce these costs.
By understanding your fees, negotiating with your processor, shopping around, and exploring alternatives, you can help protect your profits and keep your business competitive.
We can help:
Don't let high credit card processing fees crush your small business any longer.
Take the first step towards protecting your profits and increasing your bottom line by booking a call with one of CardChamp’s Credit Card Processing Fee Elimination Specialists.
Our team of experts will work with you to understand your current fees, help you negotiate with your processor, or explore alternative solutions to help you reduce your credit card processing costs.
Book your call now at cardchamp.com and start saving money today!