More and more customers are paying for goods and services with credit cards today. For merchants who accept these cards, it means paying credit card processing fees and tolerating a lower profit margin. Here are some tips for business people in the Los Angeles area who would like to save on those fees.
How To Reduce Your Transaction Fees
Read The Fine Print
An easy Google search will find several credit-card processors such as Van Nuys merchant account services. Some offer low transaction fees, while others offer no monthly or annual fees. You should read the fine print on credit card servicing contracts and compare each company to find the one that’s best for you.
Use A Card Reader
Processing fees are usually higher on cards entered manually because they carry a greater risk of fraud and theft of information. Always insert or swipe the card into a credit card reader. The magnetic strip on the back of the card contains security features that don’t apply to manual entry. This method will keeps fees lower.
Set A Minimum Amount
Set a minimum purchase amount for credit-card transactions. For Van Nuys businesses, such as convenience stores with lots of small transactions, processing fees eat into your profit margin and may make sales of $5 or less unprofitable. A minimum-purchase policy also encourages paying with cash for small sales.
Finding The Best Deal
Like you, credit-card processors have plenty of competition. You can use that to your advantage by comparison shopping. As part of the process, ask potential processors for suggestions on how you can save even more on processing and other fees.