Everybody wants low rates. In business, it is a must to keep your administrative fees as low as possible. How do you lower the credit card processing rate for your Anchorage business? Follow these 5 steps to get closer to the rate of your dreams (or at least, not your nightmares).
For more information, read our blogs, How Does Credit Card Processing Work? and Cut to the Chase: An Introduction to Credit Card Processing Fees.
1. Find the Right Merchant Services Provider for Your Anchorage Business
Have you read our blog, Merchant Services and You: Find the Best Fit for Your Anchorage Business? You can do a lot to lower your credit card processing rate by choosing the right merchant services provider for your Anchorage business from the beginning. Here’s why:
- Merchant services providers use a variety of pricing models.
- Merchant services providers have a variety of ethical standards.
- Merchant services providers offer a variety of support levels.
You will want to find a merchant services provider who offers the best pricing model for your sales volume, holds the highest ethical standards (transparency is especially important), and provides the highest level of customer support. Doing so will ensure that you are not paying more than you should, that your provider is not charging you hidden fees, and that you will not be left out to lunch on charges that do not make sense.
At Cornerstone Credit Services, we believe that the best merchant services providers for Anchorage businesses are Anchorage businesses themselves! Learn more in our blog, When It Comes to Merchant Services, “Buy Local.”
2. Compare Credit Card Processing Pricing Models
Once you have found the right merchant services provider for your Anchorage business, the pricing model they use will affect your credit card processing fees more than anything else. The four most common pricing models in the industry are:
- Interchange-Plus
- Subscription
- Tiered
- Flat-Rate
Some models are transparent. Some allow merchant services providers to hide their markup fees. The two transparent models are interchange-plus and subscription. Interchange-plus is recommended for most businesses whereas the subscription model is best for businesses with high sales volumes. You can learn more in our blog, “Competitive Rates!” A Comparison of the Top 4 Pricing Models in the Industry.
3. Negotiate Your Credit Card Processing Fees
Did you know that you can negotiate your credit card processing fees? Very few things in life are non-negotiable. You never know until you ask. One of the biggest things you can leverage in a negotiation with your merchant services provider is your transaction volume. The more you sell, the more valuable you are to your provider. Give it a try!
4. Set a Minimum Purchase for Your Anchorage Business
Now you might be thinking, “Isn’t it illegal to set a minimum purchase for credit card users?” This is a common misconception. It is legal to set a minimum purchase up to $10, however, surcharges are illegal in most states, including Alaska. A surcharge is a fee required from customers who use credit cards. Although you cannot use a surcharge, you can set a minimum purchase for credit card users and set a discount for customers who use cash.
5. Lower the Risk of Fraud at Your Anchorage Business
If your Anchorage business is determined to be high risk for fraud, your merchant services provider is going to increase your credit card processing fees. You can lower your risk by always swiping/dipping credit cards and never keying them in. In addition, you can collect security information like the zip codes and security codes.
Are you ready for a lower credit card processing rate? Put some of these tips to the test! If you do not already have the right merchant services provider, we would love to talk to you. At Cornerstone Credit Services, we hold the highest ethical standards and provide the highest level of customer support. We also use the interchange-plus pricing model for its transparency and effectiveness for the most Anchorage businesses.