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Credit Card Processing Fees Should Add Up to Value

Credit card processing may not be the most exciting part of any particular business, nor even the most essential. However, especially these days, every penny counts. Therefore, its time to look at the bank statement and see if those credit card processing fees add up to value.

Credit Card Processing Fees Are Often Worth It

That first time a business owner sits down and takes the time to look at those relatively small but insistent credit card processing fees can spark anger. What do these people do to deserve such frequent payments? But this attitude sells short how it can be beneficial it is to work with an excellent credit card processing provider. The ability to process credit cards is among the most valuable of selling tools. A lot of people wont go for "cash only" anymore.

Accepting that credit card process is worth something is a necessary first step to looking over that bill with clear eyes, rather than bitter ones.

Sure Its Worth Something, But How Much?

Credit card processing fees generally amount to between 2 and 5 percent of each swipe. Obviously its a brilliant idea to stay on the 2 percent end of that spectrum. This is where carefully perusing that monthly statement can begin to make a difference. If the per transaction fee is coming in at 4 percent, for example, maybe its time to investigate other options.

Somebody else may likely do the job, and do it well, for closer to that 2 percent. The only way to know that 4 percent is a problem is to look at that monthly statement and do the math.

Credit Card Processing Fees Should Make Some Sort of Sense

Credit card processing companies, because the industry is so crowded and price-sensitive, sometimes resort to charging fees with funny names. If these funny names represent fees that represent real value to the customer, thats one thing. But if the funny named fees are just so much lard, they need to stop showing up so frequently on that monthly statement.

Making list of each fee and totaling up how much it cost this month, and then thinking about what value each fee represents for the customer, can be an excellent way to audit the overall value being provided by a credit card processing provider. Solid, reliable providers may have a fee with a funny name here or there, but those funny names mean something, and represent real value.

A Second Pair of Eyes Can Mean $200 Savings Per Month

Once the monthly statement has been closely examined by the merchant herself, it may be wise to bring in a business associate and compare notes. Its amazing how much business owners can learn from each other. Sometimes, merchants go as far as to literally compare their monthly statements side by side, to see which credit card processing fee structure is most beneficial.

Sometimes, such information sharing results in a change of credit card processing providers for the merchant who sees her friend getting a better deal than her.

Source

Forbes.com



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