Processing payments can be costly, but there are ways to lower your costs and get things under budget. Follow these five tips to save yourself money when processing electronic payments.
- Choose an all-in-one-provider
Many don’t realize that processing payments can sometimes mean you’re getting one service here, another there, from multiple providers. In the end, you’ll end up with a merchant account from one provider and a gateway from another. Go a different route. Instead, get all of your payment processing solutions from one single source so that you don’t have to bargain with multiple providers. Most all-in-one providers offer a single price for everything, so you don’t have to worry about racking up costs from a la carte services.
- Start with smaller volumes and increase in time
Even if you think you might grow, start modestly. You are likely to get better rates this way. Processing with a starter volume could save you by qualifying you for a package that offers a single flat fee instead of variable rates. You can always add more or expand. At least, you should be able to. Make sure your processor gives you a discount for starting small, and be sure you can scale to larger volumes with little hassle, if needed. You’ll thank yourself in the long run.
- Don’t use a bank as your merchant services provider
Many banks offer merchant services, but they aren’t the best option. Many simply white label a private provider’s solutions and mark up the price. Be wary. Instead, find your own merchant services provider by shopping around. Scope out the industry’s top processors by visiting a site like Merchant Maverick.
- Buy your own terminals
Leasing equipment is more costly in the long run. Go ahead and invest in terminals yourself, especially EMV capable terminals. You’ll find that the cost isn’t as bad as you thought, and the return is worth it.
- Try ACH/eCheck processing
If you’re interested in electronic payments, but want to save money, try processing ACH payments instead of cards. Typically cheaper, ACH payments are simply eCheck transactions, which are governed by NACHA and process through bank accounts instead of card associations. Think rent payments and tax payments, for example. ACH/eCheck payments are a great way to get started in electronic payments for less cost.
There are many ways to save money while processing payments. Follow these five tips to get started and visit our website to learn more.
Photo credit: Ondrej Supitar