As a business owner, you are constantly looking for every way to increase your profit margins. One of the principal things to do is eliminate unnecessary and pesky costs such as credit card processing fees and many others that are at war to bring your business to its knees.
What is the cheapest way to accept credit card payments? It’s hard to give a definite answer as there are many companies such as https://paymentcloudinc.com/accept-payments/credit-debit-cards/ that offer their services at fair prices.
It’s up to you to research, find, and compare the different companies that allow you to accept the payments at rock-bottom prices.
What Should You Look Out For When Finding An Affordable Credit Card Payment Processor?
Keep Away from Tiered Pricing
Tiered pricing was introduced to condense the many charges associated with credit cards into fewer and more manageable transaction numbers.
The tiers are classified into three main flat rates based on the type of cards: qualified, mid-qualified, and non-qualified. While these tiered rates simplify things, are they good? Absolutely not, as you often end up paying extremely high fees without even knowing.
To avoid these many-tiered systems, which can bug your business, consider a provider with interchange-plus pricing. Under this plan, you can save a significant amount of money from the processing costs.
When you find a credit card payment processor, the first thing you should look for is their pricing model. As a rule of thumb, stay clear of a service provider providing a tiered pricing model.
Beware of Hidden Fees
If you are not keen, providers can add a junk of fees to your account, some of which are entirely unnecessary. Some of these fees include: early termination fee, PCI non-compliance fee, and many more.
When doing your research, ask to see all the fees involved in a transaction. To have a clear picture of what is going on behind the scenes, go with a provider with a transparent fee structure.
Avoid Long-Term Contracts
While a lengthy contract might be appealing as you don’t have to keep finding a service provider, it’s unnecessary, especially when running a startup business.
This is because the service provider might lock your business into unfavorable terms and rates that might end up not working in the future, and when you want to end the contract, you are forced to pay extremely high termination fees.
To have an easy time, avoid getting into contracts that run into years.
You will even be better off working with a service provider that allows you to try out its services for some time, then subscribe once you are satisfied with the service.
Avoid Leasing Equipment
Providers unethically advertise leasing as the cost-effective way to have a credit processor. If you’re good at making informed decisions, you’ll notice that these companies entice you into signing a leasing contract whose price will be several times higher than purchasing your own.
To make it worse, some providers set high termination fees to ensure you complete your set term.
Sometimes, some companies renew the contract, forcing you to continue with another long and confusing subscription, which you didn’t want in the first place.