Credit Card Processing 7 Tips To Save Money On Your Merchant Account

There are many ways to reduce fees associated with merchant accounts that accept credit cards. This article will show you how to identify and fix any problems in your merchant account.

7 ways to save money on merchant accounts:

1. Double-check the signature of the customer against the signature on his or her credit cards. Verify that they match. To verify the information, get another ID if the card isn’t signed.

Although this sounds straightforward, think about how rare it is when you purchase something with your credit card. Sometimes the names of the children will match, but not always the first. This can make it tricky. This is where you will need to make a judgement call. However, situations such as divorce and children using a parent’s card without permission can happen. Ensure that both your first and last name match to avoid chargebacks or disputes which can lead to fees of between $25 and $40 to merchants.

2.) Always ‘batch out’ every day that you accept sales. Transactions that are left unfinished for more than 24 hours can result in a downgrade and higher processing fees.

3.) Swipe the card as often as possible, instead of entering the transaction key. If it fails to take the first swipe, you can try running it in the reverse direction. Transactions linked to a “swiped” card will normally be processed at the lowest discount rates. This is because physical swipes of cards are less risky.

4.) This is crucial because you’ll end up paying more if your zip code doesn’t match or is not provided.

5. want to maintain open communication between yourself and your customers. If they see their monthly credit card statement or receipt and have any questions, they will call you instead of their credit card provider. If they are unable to find the source of a charge and don’t know where it came from, they will call their credit card company. This can cost you anywhere from $10-40 in chargeback or retrieval fees.

6.) If the terminal prompts for corporate card data (i.e. Do not ignore the prompt if the terminal asks for corporate card data (i.e., tax amount for a sale). This information will help you get lower rates than if it is not provided.

7. If you accept large amounts of debit/check cards, ask your processor for a lower rate. Merchants that have a small ticket size will generally receive a larger number of these cards, and the discount rate is usually lower than credit cards.

7 Easy Ways to Save Money on Your Merchant Account

These tips are easy to implement and should result in significant savings. These cost-saving measures should be available to you by contacting your current processor. They may not all be able to offer these savings, simply because they make less on downgraded transactions that on swiped or qualified transactions.

T. L. Lindemood is an entrepreneur-turned-business-consultant with a passion for helping other business owners save money on their necessary business expenses.

 

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