Finance If you don’t want to pay a lot of money for processing credit cards, this article might be helpful.
Owners of small businesses say that paying high fees for card processing is overwhelming.
According to data provided by the Bureau of Labor Statistics, half of new businesses fail within the first 48 months.
By the end of 2024, it is anticipated that credit card volume will rise by 33%. In contrast, the volume of cash payments will decrease by approximately 27%. Listed below are some common strategies that can assist you in getting the best deal. Continue reading to learn more.
1. If you work with a merchant service provider, you can use their merchant account to process credit cards rather than using a bank. Merchant services are offered by some banks. They actually contract out the services to third parties. They end up charging you more for the services as a result.
As a result, you won’t have to divert your clients and customers to a different provider if you use a merchant service provider instead. You can also get immediate protection from fraud. In point of fact, cash flow issues account for more than 80% of startup failures.
2. Choose a PCI-compliant payment gateway A payment gateway is basically cloud-based software that processes credit cards. This application’s function is to facilitate credit card transactions. In addition, it establishes a connection between the credit card network and the bank that issues the card. The merchant’s account receives the funds from the customers’ credit cards following approval.
We are aware that this procedure involves the use of private data. As a result, you might want to work with a payment gateway that complies with PCI. To put it another way, this kind of gateway is supposed to make use of tokenization and encryption technologies.
3. Integrate Your Payments Instead of relying on a third-party payment software, we recommend that you hire a company that offers a means to process transactions within your accounting software. The goal is to reduce human error and eliminate double data entry.
If you integrate your payments, you will be able to automate the process and cut out all of the fuss and stress associated with it.
4. As the owner of a small business, your time is extremely valuable. Choose a Personalized Service. As a result, we recommend that you seek out a specialized company that can manage the entire procedure. More than half of customers are unable to resolve their issues if they are unable to talk to someone in person.
As a result, we recommend that you work with a processing service that gives individual attention to each customer. And for owners of small businesses, this is of the utmost significance.
In a nutshell, if you want to lower your credit card processing costs, try these four strategies. When you look at the data, you’ll see that these strategies have helped small businesses cut these costs by 21%.
