Credit card processing fees can take a big bite out of your profits, no matter your business. There are several different strategies that you can use to mitigate the impacts of processing fees. This blog post will discuss how to offset payment processing fees and keep more money in your pocket!
Why do Payment Processing Fees Occur?
Every time a customer pays with a credit or debit card, the card issuer charges a fee. Depending on the card type, the cost can vary.
For example, American Express typically charges higher processing fees than Visa or Mastercard.
Regardless of card type, you will encounter processing fees if you accept credit card and ACH payments.
How do you Offset Credit Card Fees?
There are a few different ways that you can offset the costs of processing fees, including:
- Offer cash discounts: One way to offset processing fees is to offer cash discounts. For example, you could offer a three percent discount for customers who pay with cash.
- Set a minimum for using a credit card: Another way to offset processing fees is to establish a minimum price for customers who want to use a credit card. For example, you could require customers to spend at least $20 if they use a credit card.
- Implement surcharge fees: If you are struggling with processing fees, you could implement surcharge fees. Surcharging requires you to implement a program that transparently informs customers of the extra charge for CC processing.
This list should give you ideas on how to offset credit card processing fees.
Each of these options has the potential to save you money, so it’s worth exploring which will work best for your business.
Use a processing fee calculator to see how much you could save by implementing some of these strategies!
What is a Processing Fee Calculator?
A processing fee calculator is a tool that businesses can use to estimate how much they are paying in credit card processing fees.
This calculator can help you compare pricing models, such as flat-rate and interchange-plus pricing. You can also use it to compare the costs of different processors.
Processing fee calculators are a valuable tool for any business that accepts credit card payments.
Third-party processors, like SeamlessChex, provide a free processing fee calculator and offer advanced ‘compare’ and ‘analysis’ tools. This will allow you to quickly understand what fees you are currently paying and what you will save if you switch processors.
Let Us Help You!
Choose SeamlessChex to help offset credit card processing fees. SeamlessChex is a full-service payment processing company that offers competitive rates and transparent pricing.
We are here to help you save money and help grow your business!
Protect your investment today by signing up for a free account. If you have questions about how to offset credit card processing fees or want help choosing a payment processor, please contact us today. We are always here to help!
Sign up for a free SeamlessChex account today! Click here to get started.