Tips To Help Your Business Save Money!
1.(Keyed-In Transactions)If your business keys-in transactions, you want to ensure that your terminal prompts for a zip code. Full AVS (address verification) is not needed, but Visa and MasterCard require at least the zip code.
2.(Pre-Authorization)Visa and MasterCard require that if you pre-authorize a credit card you settle the transaction within 1 day for retail businesses and 2 days for card not present businesses.
3.(Pre Authorization)When you Pre-authorize a credit card, the settled amount can be no more than 20% of the pre-authorized amount. Example; if you pre-authorize $1,000 the settled amount has to be no more than $1,200.
4.(Batching Out Your Terminal)Make sure you batch out or settle your terminal each day. Visa and MasterCard both require transactions to be settled or close within 1 day or they are subject to higher rates and fees.
5.(Manual Imprinters)It’s a great idea to make sure your business has one of these and to take a manual imprint when you have to key-in a transaction. If you ever have a charge-back, the first thing Visa or MasterCard will ask for is proof of the sale. You can save yourself a lot of time and hassle by doing this.
6.(Pin Pads)If you process high dollar transactions you may want to consider purchasing a pin pad. You pay no percentage rate for PIN based debit transactions, only a flat per item transaction fee regardless of dollar amount.
7.(Commercial & Business Cards)Visa and MasterCard have special programs designed for businesses processing commercial, business, purchasing and government cards that allow you to save up to 1% on every one of these transactions. You need to make sure your processor is a certified B2B/B2G processor or you will not be getting these special preferred rates.
Ensuring your processor properly trains your employees and staff on requirements for processing particular card types or transactions is just as important as providing a low rate. Not doing any one of the tips above can cost your company an additional 1-2% or more on your bottom line.
Your biggest weapon to combat higher processing fees can be summed up in one word KNOWLEDGE. Remember, for some processors it is not in their interest at all to train their merchants on how to keep their processing fees at a minimum. The reason is because they are trying to make as much profit on each account as possible. They put their success ahead of their merchants success.
There would not be a merchant services industry without you the merchant. Equip yourself with knowledge and know what your rights are. Don’t be fooled or misled by a slick talking sales person just looking to make a quick commission. Hold your current merchant services provider accountable and know exactly what your paying and why. If you are looking to setup your initial merchant account, do a thorough comparison of different companies services and make sure to always request to see their Schedule A.
Don’t let your profit margins shrink, expand them, by following these 7 simple credit card processing principles.
Learn more about setting up a low cost Merchant Account for your business. Visit www.tailoredtransactions.com to checkout their Merchant Services Solutions.
