Credit card processing fees can take a big bite out of your profits no matter what business you are in. 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. This fee can be as high as three percent of the transaction total. The actual amount can vary depending on the type of card used and other factors. For example, American Express typically has higher processing fees than Visa or Mastercard. Regardless of card type, if you accept credit card and ACH payments, you are going to encounter processing fees.
How do you Offset Credit Card Processing 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 you can set 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 want to 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 some 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 type of calculator can be used to compare different pricing models, such as flat-rate and interchange-plus pricing. It can also be used 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 Seamless Chex, provide a free processing fee calculator and offer advanced ‘compare’ and ‘analysis’ tools. This will allow you to easily understand what fees you are currently paying and what you will save if you were to switch processors.
Let Us Help You!
Choose Seamless Chex to help offset credit card processing fees. Seamless Chex 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 any questions about how to offset credit card processing fees, or if you would like help choosing a payment processor, please contact us today. We are always here to help!
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