Paying high credit card payment processing fees can cut into the profits of a small business significantly. However, in order to keep up with the competition, you have to accept credit cards or you risk losing customers. Many small business owners shop around looking for the best rates possible, but payment processing companies sometimes have to change their rates as well.
When the VISA/Mastercard Association recently announced they will be increasing their rates, many merchant services said they must do the same. So if you’ve ever thought about shopping around for a new payment processor, now may be the best time.
Knowing Whether Your Rates Are Too High
Even if your rates increase, how do you know if you’re paying too much? Doing a thorough comparison of numerous payment processing companies is the first place to start. Then you could break down what exactly you’re paying for. Many times it’s not only the transaction fee included in your rate. There could be other monthly fees or maintenance fees you’re not aware of. Having a complete breakdown of the fees you’re currently paying compared to the fees other companies charge is a good start to determine whether you’re paying too much.
Will Negotiation Work?
When a payment processing company announces they will be increasing their rates, sometimes negotiation won’t have much of an impact. In most instances, a small business owner will have to look elsewhere for other merchant services. At that time, negotiations can ensue. Not all payment processors will be increasing their rates as a result of the VISA/Mastercard Association announcement, and it’s these processors that want your business more than any others.
Get A Second or Third Opinion
Getting a second or third opinion about the current fees you’re paying can help you gain some clarity into your payment processing situation. Working with a company you can trust to be transparent makes your life much easier. Some online payment services only provide you with their rates and allow you to make your own decision, which doesn’t help you out much as a business owner.
Instead, consider talking to Precision Payment Systems' CEO and founder Alison Burns. If you think your credit card payment processing rates are too high, Alison will do a thorough analysis and break down every fee you’re paying. We ever offer a "meet it or beat it" rate guarantee. It’s our goal to ensure businesses are getting the most bang for their buck and not getting taken advantage of by sky-high processing rates. If you’d like a consultation or analysis of your current fee schedule, contact us today.