Improve Credit Card Processing Rates For Tool Suppliers
It is possible to get a low credit card processing rate as a tool supplier if you present how lower fees will fit in with your business structure. You may be dealing with business to customer and business to business transactions. Both may be a combination of a high volume of transactions, but the purchase size may be small or large as tools vary in price for business-to-customer exchanges. It may be difficult to get a fair deal on your credit card fee rate when you have a variety of transactions that have different processing standards. However, you can work with your credit card processing company to decide how you can create a contract that fits your business needs and lower rates.
You can get help now to reduce your credit card processing rate for your tool supplier from a knowledgeable advisor. Call Interchange Pros today.
How to improve Credit Card Processing Rates
It is time to make a change when you feel your revenues are being depleted due to high credit card processing fees. Fortunately, there are multiple approaches you can take to reduce rates.
Lower Non-Processing Fees
In addition to a transaction fee for every purchase, there are many additional processing fees that you can negotiate with your credit card processing company. For example, there is the terminal rental fee, the account maintenance fee, and the minimum processing fee. The amount you pay to rent the terminal that you use for swiping cards and entering credit card information can be reduced. You can state your reasons why, and negotiate this point with your credit card processor. The account maintenance fee is the cost that you pay monthly for the upkeep of your account. This can also be discussed for a lower percentage. The minimum processing fee is the amount that you pay when you don’t meet the minimum processing amount for your account. You might see a chargeback, batch payment processing, and cardholder dispute fees as well. These are other fees you can ask to reduce.
Negotiations Are Key
Try to leverage strong points to bargain with your credit card processor. For example, near the time for contract renewal is a good time to reach out to them to restructure your contract. When transaction volumes change and you have greater growth, there is potential to find a reason for why your processor may consider reducing the fee while getting rid of additional ones. They would rather keep your business as you grow more successful with a steady influx of payments, as opposed to losing you to the competition.
Different Transactions Cost More
You can optimize your payment processing by focusing on the least expensive transaction types. The least expensive type of financial transaction is EMV. Swiped transactions cost far less than ones that are manually inputted. Debit purchases are less expensive than credit purchases. Understanding what your customers prefer and creating a route utilizing one of these methods can aid to reduce costs. You can also create incentives for customers to choose a particular payment style.
Reduce Transaction Processing Time
The best interchange rate can come from charges that are processed more quickly. You can keep these transactions within 24 hours to help turn your financial transactions into a smoother process. Credit card processors like to see businesses that prioritize payments this way, which can result in lower processing rates.
Different Tiers for Different Transactions
There are different types of payment processing programs you may or may not qualify for. Typical programs can include the flat-rate plan, the interchange-plus plan, and the tiered plan. If you have both business-to-business and business-to-customer transactions, you can possibly save more money by placing these transactions in separate programs. That is because business-to-business transactions will be much larger in price but less frequent. Conversely, customer purchases are higher in volume but smaller in cost. You may want a flat-rate plan for merchant-to-customer purchases and a tiered plan for business-to-business purchases. Discussing with your processor which plan would be the best fit for what type of transaction will help you save a lot of money.
Reduce Fraud and Include Address Verification
Credit card processing companies love it when you help them reduce the risk of fraud. When you perform address verification services (AVS) it helps provide your credit card processor with steadier payments and fewer complications. For other low-risk business practices, you can encourage your customers to purchase online. Virtual purchases reduce the amount of processing required as data does not have to be input manually by staff. Additionally, there are heightened security measures with an online terminal. You can also ask repeat customers to save their information on their account profiles for future purchases.
Learn More about Improving Credit Card Processing Rates
Work with a great team who can help you find rates that work for you. Contact Interchange Pros now.