- John Beaman
Reducing Payment Processing Costs
Anytime a business deals with their payment processing services, the conversation naturally leads to rates being charged and expected costs. Indeed, the rate is a very important component. However, there are various factors that can impact your rate, causing it to go up or down depending upon different variables. Below are a few things to keep in mind for your payment processing rates.
PCI Compliance One factor impacting your cost is your PCI compliance. If you are not compliant, you may receive an additional monthly fee. Moreover, failing compliance can negatively impact your rates, meaning that your costs will have two factors that may make your costs increase. Worst of all, however, is that you cannot be certain your data or your customer data is secured. As if you needed one more reason to ensure compliance, if you are not PCI compliant, you will almost never win a chargeback. Ensuring you are PCI compliant can lower your rate, protect your data, and maximize your likelihood of winning chargebacks. Pricing Structure At Merchant Masters, we give you the best pricing structure for your business. Sadly, other companies will often try to force merchants into a structure that does not benefit them. For example, some companies will use tiered pricing which shows a very good, best-case scenario but this scenario very rarely happens. In the vast majority of situations, merchants end up paying almost 0.80% more than they need to under tiered pricing. This is why we avoid it whenever we can.
Customer Information Remember, as a business, data is your friend - the more of it you have, the better! The same principle applies to your processing; collect as much information as you can: the customer address, the zip code, the card security code, etc. The more information you have, the less work the back-end acquirers need to do to verify the transaction, and this can save you significant dollars over time. When in doubt, always ask your customer to verify their zip code. Developing the habit in your organization will help save dollars at every possible turn and put it straight into your bottom line.
If you have questions regarding your payment process, simply call or email us and we will be more than happy to help. We exist to serve you, so if there is anything we can do to help your business thrive, all you need do is ask!