It’s hard enough to make a profit when you’re running an online business. The last thing you need is high credit card processing fees eating into your bottom line. Luckily, some things can be done to keep those costs down, so they don’t eat away at your profits. This blog post will cover five tips for reducing the amount of money lost on credit card processing fees and making more money with every sale!
Why Should You Know How To Offset Credit Card Processing Fees?
Offsetting credit card processing fees is something that every online business owner should know how to do. Not only will it help you make more money with each sale, but it can also save your business if you ever go under and need to sell off any leftover inventory or equipment. If you know the right strategies and techniques for offsetting your credit card processing fees, then more money can stay in your pocket where it belongs. Here are a few ideas for lowering credit card processing charges and increasing profits with each transaction.
Make Sure To Calculate All the Fees for Your Credit Card Processing Plan
The best way to offset credit card processing fees is by simply knowing what they are. Most people just sign up for a plan without taking the time to find out exactly what it includes and how much it costs them per month or year. Before signing on the dotted line, take some time out of your day to sit down with the company’s sales representative and go over everything in detail.
Most business owners can save hundreds, if not thousands, of dollars per year by performing this simple act alone compared to other companies that do not perform this step properly when setting up their plans. It may seem like a time-waster at first, but it can save you in the long run.
Consider Using a Business Debit Card Instead of a Credit Card if You Don’t Need the Cash
Not everyone requires credit card processing right away, especially if you are not selling high-ticket items that require a down payment from the customer. In those cases, it’s better to use a debit card rather than a credit or merchant account because they have fewer fees and generally process faster than credit cards. This is especially true if you sell online and want your customers to pay with a debit card linked directly to their checking account rather than a credit or debit card. This can be great for smaller transactions, but it isn’t recommended if you need the cash immediately. Suppose you have a low-ticket item that takes a week or two to sell. In that case, it’s best to use credit card processing because there will be no money returned if the transaction is declined. Most companies won’t process them as quickly as debit cards anyway.
Apply for Merchant Account Services With Lower Rates and No Annual Fees, but Make Sure They Are Reputable
There are a lot of merchant account providers out there that don’t have any hidden fees or scams. They just happen to charge lower rates, and some even give new clients their first month for free as an incentive to sign up with them instead of another company. This is great news because it gives you the chance to save thousands per year without sacrificing much in customer service or equipment. However, even though these types of providers do exist, it’s still important to make sure that they’re reputable before signing up with them. A good place to start is looking for reviews about their company online and checking out what other business owners are saying about their services. This may take a little bit of time on your part, but it’s well worth it in the long run because you’ll be able to save a lot of money and still stay afloat as an ongoing concern.
Contact Your Bank About Getting a Low-rate Business Loan To Cover Any Capital Expenses or Equipment Purchases
If you’re in a bind and need a loan to make a capital purchase or cover business expenses, consider approaching your bank for assistance. While borrowing money from your account may seem like the last thing you want to do when trying to keep costs low, it can be one of the best ways to save money when you’re in a pinch. The reason for this is because banks typically offer lower rates than merchant account providers do. They also charge less interest overall on any business loans or lines of credit that you apply for with them.
The only downside to doing it this way is that most bank applications will take longer to process. If your business can’t afford any more expenses without making some kind of capital purchase, consider using your funds before turning to anyone else for help. As you can see, your sales and marketing efforts can offset credit card processing fees. Other advantages of using a bank over a retail provider include the ability to pay back debts at any time during the year as long as terms are met. This means no interest will accrue during that time, and you don’t have to worry about any kind of prepayment penalty if the money is paid back early. You can also get your funds quickly because banks typically process loans much faster than merchant account providers do, so there’s no waiting on anything in this case. Overall, it may not be ideal for your business to go through a bank for help, but it can be one of the best ways to save some money when you’re in need.
Look Into Mobile Payment Solutions Like Apple Pay or Google Wallet That Can Help Eliminate Swipe Fees
While there are numerous ways to reduce credit card processing fees, mobile payment solutions like Apple Pay are gaining popularity. These services allow customers with certain smartphones or tablets to pay for items without swiping their cards at any kind of machine. So long as your business accepts these forms of payment from day one, no merchant fees will apply. Also, if you run an online store, this type of solution may help increase sales because it is commonly used by people who do not carry wallets. This means you can get more purchases at some point down the line if your business starts taking advantage of this type of solution. Still, it’s important to keep in mind that there are some drawbacks associated with them, such as waiting for approval from Apple or Google first before setting up an account. This is something where it’s important to weigh the pros and cons because there are some benefits associated with mobile payment solutions like Apple Pay or Google Wallet. However, you’ll have to pay a monthly fee for using these services as well, so it’s important that your business can afford them before making this kind of investment in any way.
As you can see, there are several ways for your company’s sales and marketing efforts to offset credit card processing fees. If this sounds like something that would fit into your budget but you’re not sure how to go about it, we recommend speaking with an expert in the field who can help you along the way. And once the offset is in place, you can begin saving money right away.