High payment processing fees can be a pain for both the business and customer; the business either loses revenue or the customer will feel less willing to pay because it may seem like it costs more. Luckily, you can try these methods to minimize transaction fees!
Choose Your Payment Processing Company Wisely
If you are a business and want to reduce the fees that your customer has to pay through various payment methods, then you need to carefully select the payment process company that you want to use. Read the fine print of any contract for a payment processing service; you and your customers may wind up paying more than you bargained for.
Try to choose companies that are reliable, yet offer low costs for your customers. As for you to save money with the payment processing company that you choose, keep an eye out for non-processing fees (non-transactional costs). Some examples of non-processing fees include account maintenance, statement fee, terminal rental, minimum processing fee, PCI annual fee and non-compliance fee, etc.
Set Up Accounts through Reputable Digital Payment Platforms
If you do not want to deal with the fees that payment processing providers have to offer, then you can use digital money platforms to receive money for your business. That way, you can avoid excessive fees for using the company. For instance, PayPal and Stripe are popular ways to get paid for your products/services, and many of your customers will probably have an account already. That way, they will only pay for the fees that it will cost.
Another big benefit for certain platforms is that you can request money from your clients. For instance, PayPal allows you to send invoices. Therefore, you can show your customer exactly how much they owe you for your products/services and they can pay for it easily. It is also a good way to keep track of your transactions.
Keep in mind that shoppers and business accounts will still have to face fees, but it may not be as much as signing a contract with a payment processing company.
Factor the Fees into your Prices
If you already trust the payment processing provider that you use, you can simply integrate the fees into your business’s prices. While this may not directly minimize the charges that the customer has to pay, it can help them see the payment as one large payment rather than paying for your product/service along with a bunch of other fees.
For instance, let us say that you know the payment processing provider that you use charges a flat rate of 3%, so you can add that to how much your customer will pay. You can also automatically add it to their invoices (stating how much is for fees) so it is easier for your customer to see how much they are spending.
You do not have to deal with excessive fees when you receive or send payments. Try out any of the suggestions above to decrease fees today!