If you have started a business and want to handle your finances better, the first place to look into is merchant credit card fees. These types of fees may seem insignificant at first, but in time they could cost a lot of your hard-earned money.
To eliminate all credit card processing fees, you should consider alternative payment options and discount programs that can help your transactions. In a competitive market, control over your income, all transactions, and fees can make a big difference. Let’s see how you can avoid merchant credit card fees!
Use Surcharging Or Cash Discounts
Surcharge and cash discounts pass the credit card processing fees to the client. In other words, when the customer pays for your service, their payment choice will result in an extra fee or discount.
The option of surcharging implies that the service’s total cost will also include the processing fee. This means that the customer will pay it instead of your business. For example, if the T-Shirt price is $5 and the credit card fee is $0.10 per transaction, then the client will pay $5.10 directly to the business.
This only applies if the customer chooses to pay with a credit card. If they choose cash payment, then they may receive a discount on the product, which will exempt them from paying the processing fee.
When considering these options, remember that these programs must follow state regulations. A discount program will ensure that your equipment can carry this type of transaction and that it will do it adequately.
Change the Way You Accept Credit Cards
You are probably familiar with the concept of mobile payment. If not, you have undoubtedly seen customers whip out their phones and pay at the register. This is possible because they can use their credit card on their phone via an app. This method is excellent because it is one of the fastest and most secure ways of payment.
This payment type has plenty of benefits, including a lower rate fee from banks. Mobile payments are more secure and less likely to be fraudulent so you can lower your interchange fees. These methods are accessible and only need standard technology such as a contactless POS (Point of Sale).
Adopt Loyalty and Gift-Card Programs
One of the best ways for any merchant to avoid credit card processing fees is to offer and encourage loyalty and gift-card programs. Not only are they very easy to implement, but they are extremely popular with business owners and customers.
This type of marketing encourages recurring customers, reduces interchange fees, and is very easy to track. You can build your brand presence and avoid extra fees. The gift cards keep the money within your business, which keeps future payments fraud-free. Not to mention that there is no cashback on partially used gift cards so that owners can control the revenue.
You and your customers should interact easily, free of extra fees or payment problems. Your business should also be able to get the entire amount and not lose money on hidden commissions. The best way to do this is to contact a service provider for a consultation and learn more about how to avoid merchant credit card fees for your business.