April 23rd, 2019 | Updated on June 3rd, 2021
One of the most complicated procedures in our lives is to get our new credit cards to get processed. This had become more complex with newer technologies, regulations, and fees.
It is possible that people may easily get confused with so many new changes in place. In this article, you will learn about some effective ways by which you can lower the costs for your credit card processing applications.
Because you are a small business owner, you would be getting several offers from the credit card companies to help you in saving money.
Most often they would be offering lower rates too than the other companies to get your business. But you must understand that these low offers do not always happen as they are meant to be.
In the last ten years, the processing rates for credit cards have risen by almost five percent, and this is excluding all the extra charges.
The reason for this rise is a lot of things like for instance reward cards with banks now passing rewards like gifts and vouchers to merchants. The other main reason is an utter lack of knowledge in merchant credit processing information.
The merchants will always respond to low bank rates, but they do not understand that the rates the bank show are only the lowest transaction rates. So you should not be looking for the rate that a specific bank is providing, rather the effective rate which you are likely to get.
Effective rates would be taking into account several factors which may apply to you. Thus, when you know what your effective rate is you would be able to get an accurate estimate about the processing fees.
There Are Some Basic Ways By Which You Can Lower Your Credit Card Processing Fees.
1. Switching to Interchanging Plus Pricing
2. Knowing your type of your business
3. Getting set up under the appropriate Visa or MasterCard Program
4. Knowing your card’s mix or average transaction
5. Using the Latest Processing Technologies
6. Reviewing your statements once every six months
7. Accepting all types of Cards and methods of transaction
8. Being in Contact with an account executive
9. Getting multiple bids for your card processing services
10. Buying value and not looking at the price.
What Is Interchanging Plus Pricing or IC Plus?
It is a type of pricing that used to be earlier reserved for only the most famous and reputed Fortune 500 type companies. But today, a lot of other business establishments can get them.
The banks are not open to giving IC Plus to the small business enterprises as it will prevent them from making more profits. They would prefer rather sell you other lucrative pricing which can help them get more profits.
There have been certain recent amendments done which would allow you to switch to IC Plus pricing as it will be ensuring that you can realize your cost reduction saving.
The business owners would be able to see the savings they have to go into the processors. You can find several credit card processing companies which will offer you IC Plus pricing. You need to take their offer.
Why Should You Focus On IC Plus Pricing?
You would want to get your sales transactions to be eligible for the lowers rates that are possible always. By having IC Plus Pricing, your transactions would be placed in the correct category, and you will be charged accordingly.
You will not be getting this through any other method of pricing. It is important that you remember that the transactions which are swiped will have lower rates than the ones which are keyed in. Also, debit card transactions will have lower rates compared to credit card ones.
Understand The Type Of Business That You Have
All credit cards would be using several pricing indicators and business types in order to apply the correct discounts on your rates.
When you begin your business you will see that there are different rates for different industries, in fact, a lot of industries do not even accept credit card transactions as the rates are quite high and cut into their profit margins.
But today credit card Company is giving away special rates for different types of businesses, and there are over four hundred categories of businesses. So you need to see which type of business you are categorized under and then find out what your rate is.
The Additional Information You Cannot Miss Out!
One of the essential aspects to look into when you are getting your credit card processed is your specific credit report and credit score.
You will have to ensure that you have a good credit report and a decent credit score; otherwise, your credit card processing would take a lot of time. It is important that you pay all your bills on time and have a healthy credit report.
If you want to find good credit processing companies, then you can simply search for them on the internet. IT is advised that you should choose companies which are near or in your locality.
Also, you must see to it that they have a good customer care service because a lot of times there can be little details which need to get updated or doubts that you would like to get cleared and having a good customer care service can help in this regard. If you want to get more information on free credit card processing, then visit the internet forums.
For business owners, it is crucial to find ways by which they can lower their credit card processing fees, and there are several ways that this can be done.
One of the most effective methods is to go for Interchanging Plus Pricing system and also to be aware of the specific category under which your business will be categorized.
Also, you need to have a decent credit score and a good credit report. Hopefully, the information mentioned in this article will have helped you.