Payment processing fees are a pain for business owners, especially when they become significant monthly expenses. Most SMBs in the B2B space have goals to cut down their payment processing fees over time, but lack direction on how to tackle this task.
Although some payment processing fees are inevitable, I’m here to help you negotiate fees to get the best deal possible. As an expert payment processing strategist in the home heating and fuels industry. it’s my job to drive my clients toward a successful payment processing plan. Follow these tips to help reduce dreadful payment processing fees:
1. Speak with your credit card provider
As the saying goes, it never hurts to ask. You might be leaving money on the table. Although this tactic is not always successful, it’s useful to ensure that you’re getting the best deal possible. As your business grows, your credit card processor will want to see you’re a valuable customer.
Start your first negotiation with your credit card provider by leveraging your transaction volume. If you have a large transaction volume and loyal, regular customers, your credit card will likely not increase processing fees. If you’re not to the point where you have a large transaction volume, remain patient because it will happen soon!
2. Implement a surcharge program
If you’re sick of credit card processing fees, launching a surcharge program is the way to go. Instead of paying for credit card processing fees, the responsibility is now shifted onto the customer. If the surcharge is problematic for the customer, they can pay for the transaction in cash or debit instead.
3. Choose the right pricing model
When working with a credit card company, you can choose from three main pricing plans that depend on your business growth, volume, transaction type and more. Although some customers may want a flat rate for payments, others want a subscription-based payment plan. Although everything is handled in the flat-rate plan, users are locked in at a 2.6-2.9% credit card processing rate for most of their agreement.
With a subscription plan, users pay a monthly fee of $49 to $99, plus a small interchange charge to cover transactions. Be sure to evaluate your current financial situation before choosing between these two options.
To learn more about my financial consulting services, visit my website or call 617.843.5700. I look forward to working with you and making a plan on how I can drive down your payment processing fees.
