Improve Credit Card Processing Rates For Building Companies
When you work in the construction industry, credit card processing fees may be high for the large transactions that are common for your industry. There are ways to reduce these costs through different strategies you can take. To improve your relationship with a credit card processing company, you can be transparent with your business practices and argue a number valid points on why lower fees are more sensible for your situation.
You can get started now with lowering your credit card processing rate for your building company. We have a great team that can assist you. Call Interchange Pros today.
How to Lower Credit Card Processing Fees
When you believe that your credit card processing fees are higher than they should be, try to find a new contract with better rates at a new payment processor supplier. There are multiple ways to reach this goal.
Use Negotiation Tactics
You can negotiate with credit card processing provider when your contract is nearly up or you simply want to reduce exorbitant fees. What you would have to do is show the type of transactions and purchases you typically receive every month. Delivering this information to a new provider will show them the nature of your payments. They can help you find a better-structured cost framework that can improve your finances and keep you loyal to their services.
One way to help reduce fees is to show that you are expanding and have more revenue coming in than in the past. Showing that your company is growing over the years can impress the credit card processor and let them know that you have a steady income from your customer base. This shows reliability and lower risk in comparison to a company with spotty revenue, a short history, and notable gaps. When you point to your company’s success this can help to reduce fees.
Eliminate Fraud in Transactions
If you get rid of the risk of fraud it is viewed favorably by credit card processing companies. That is because they are the ones that can suffer from loss if someone fraudulently purchases an item and doesn’t provide the money for it. Incorporating services such as an address verification service and other approaches that can double-check credentials will help protect all parties from fraud.
Focus On Cheaper Transactions
Not all transactions are the same. Swiped transactions have a different price from that of manually inputted ones. You should know which transactions your customer prefers. If they enjoy purchasing using a specific type of transaction that is cheaper, you can focus on making it easier for them to pay you through this method. Incentivizing transactions that are cheaper and less costly can also work. Buyer points, rewards, and other systems which encourage customers to purchase with your preferred method of payment are great ways to cut costs.
Cut Out Non-Transactional Fees
Many of the fees not associated with purchases are non-negotiable. However, for the ones that are negotiable you can try to get the price reduced. For example, the fee that you pay for renting equipment can be negotiated and is considered a markup cost.
Choose Pricing Models That Make Sense
Try to work with a pricing model that makes sense for your style of transactions. For example, credit card processing companies often offer a membership, flat-rate, tiered, and interchange-plus pricing model. Membership and interchange-plus programs are considered to be “pass-through” models. The pass-through model provides a wholesale processing fee that is itemized; it is charged separately from the processor’s markup cost. The blended approach is where the flat rate markup is charged in conjunction with the processing fee. The cost isn’t divided in two like the pass-through model. It is recommended that you choose one of the pass-through models to save money. This gives you the opportunity to see how wholesale rates influence the total cost. Wholesale rates are entirely based on the risk of the industry you are in. You can later argue to lower the wholesale rate as you prove that your company is low-risk when concerning fraud.
Provide Flexible Options to Improve Customer Relationship
If you want to make sure you get payments on time, you can create structured plans that spread out payments. This might encourage clients to pay you on time for large projects and also help to strengthen your relationship with them. Create an automatic billing payment plan for installations. This can also reduce the risk of fraud. Because customers are paying consistently and on time, this can impress credit card processors and be another point to negotiate a lower transaction fee.
Learn More About Credit Card Processing Fees
If you want to know what else you can do to lower credit card processing rates you can speak to an account representative. Contact Interchange Pros today.