Wingman Weekly: How to Lower Credit Card Processing Fees
Businesses are always wondering how to lower credit card processing fees. The solution depends on each business. Every merchant service provider is different, so the answer lies in the merchant statement. Here are a few things to inspect in your merchant statement:
Notifications: some merchant service providers have notifications in their statements that notify you of rate increases. These can usually be prevented by communicating with your provider.
Processing Fees: calculating your processing rate might reveal that you are paying a lot more than you should. You are able to calculate your effective processing rate yourself by taking the total amount you paid in fees and dividing it by the total revenue you made for the month. If that percentage is above 3.5%, you are paying above industry average. If you are paying above industry average, it might be time to shop your rate with other providers. Check out our blog on why credit card processing rates are so high for more information.
Unnecessary Fees: fees like Non-PCI Compliance Fees and Annual Fees are costs that are not common amongst every merchant service provider. Shopping your merchant services or performing an action step can eliminate these.
Monthly Fees: these can take form in many different ways. Hardware fees, monthly subscriptions, or even a fee for not hitting a monthly minimum processing volume. Shopping merchant services and comparing costs remove most of these.
At the end of the day, businesses aren’t looking to shop their merchant services if everything is going well. That is why at Wingman Payments, we value transparent pricing and month-to-month contracts. If you think you are being charged more than advertised or need help reading merchant statements, our Discovery Call can help diagnose if your rate is good or not.
If you’d like to learn more about how we can help reduce your processing fees, Contact Us at 470-822-8683.