How Businesses Can Save On Credit Card Processing Fees

Nowadays, businesses must have online stores so they can grow globally. More importantly, buyers from all over the world prefer buying from shops that offer easy payment methods such as online payments, or credit card payments. But if you’re a newbie in the business world, payment processing may seem difficult to understand, especially when it comes to the processing fees of credit cards.

To save on these processing fees, you can do one of the following:

  1. Choose the Best Fee Structure for Your Business

Before agreeing on a contract, you must fully understand and read the terms, fees, and agreements. Some processors charge you yearly, monthly, or on every sale you make. Processors also offer various pricing models, therefore you must not rely on the teaser rate they offer. As much as possible, choose processors that are already established and can offer discounts on credit and debit processing.

So before signing a contract, here are the things you should consider to get the best processing fee structure for your business:

  • Check your monthly sales – If you’re processing credit card payments that are less than 3,000 USD, then consider a processor that has doesn’t have annual or monthly fees. These processors offer a flat rate, and they are called mobile credit card processing companies. On the other hand, if you’re accepting more than 3,000 USD monthly for your credit card payments, then it’s best to choose those offering lower rates but still provide a full service.
  • Consider the type of card payments you’re accepting – If your business accepts both on-the-go and online methods, then a processor that offers payment in multiple ways is the right choice. But if you only have a brick-and-mortar shop, a mobile card reader is a good choice so customers can pay wherever they are in your shop, or a countertop checkout station for a terminal in your shop. A new POS is also recommended so that your business will run smoothly,
  • Learn about fees – Searching online about the processor you’re planning to work with is not a waste of time. It may consume some of your time, but it will save you a lot of money, such as undisclosed fees. Standard fees are Mastercard’s Merchant Location, FANF or Visa’s Fixed Acquirer Network Fee, gateway fee, monthly fee, and others. However, you may want to ask your processor about these fees that are nonstandard and sometimes undisclosed, such as access fees, audit fees, postage and handling fees, online reporting fees, additional service fees, club or membership fees, setup fees, and the like. When comparing credit card processing systems, visit sites like CardSwitcher, which offer comparisons between systems so you know which one can best suit your business.
  1. Set Minimum Credit Card Sales

The tiered pricing system is expensive and known for having hidden fees. It’s also called bundled pricing which has non-qualified, mid-qualified, or qualified terms. In this system, interchange fees are not disclosed, which means that processing’s actual cost is not shown, thus prone to excessive pricing. Interchange fees are charges paid on issuing banks by the merchants. On the other hand, if you’re using a flat payment percentage, you probably don’t have to worry about it.

For instance, you may be paying 0.25 USD for every transaction. So imagine if they’re purchasing worth of 2 USD only. To save on fees, post a note reiterating that card transactions must be with a minimum of the amount you want. If asked on why such exists, then explain to them the expensive charges on such cards.

  1. Don’t Delay Settling Your Transactions

If you have a business, it’s a common mistake to settle your transactions after your office hours. Settling your transactions after 24 hours may not be a wise decision. When you don’t pay your purchases daily, you’ll be charged more or what is called a downgraded interchange rate.

When you settle or batch out your transactions daily, you’ll likely have the following benefits:

  • After authorization or swiping the card into the system, the lowest possible interchange fee is available if it’s settled within 24 hours.
  • Settling the transaction within the day makes your customer satisfied. On the other hand, if it’s not paid right away, you’ll have a confused and dissatisfied customer.
  • Avoiding expensive chargebacks. A chargeback happens when a customer disputes the sale with the bank after settling your transaction late.


Building a business or growing your business is a critical stage as this is when you want to keep your expenses at a minimum. So choosing the right processing structure for your business is vital. Even if a credit card processing fee is only below a 1% charge, it can become expensive if it accumulates.

To avoid such expenses, always learn the ropes before going into an agreement with a credit card processing system.