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Sunday, January 31, 2010

The Beast of Burden

Interchange fees charged by credit cards companies have no movement in negotiating fees and are a fixed burden on business and consumers.
“The best we can do is size up the chances, calculate the risks involved, estimate our ability to deal with them, and then make our plans with confidence.” ~ Henry Ford
The following cost cutting tips are suggested:

  • Negotiate processing fees.  A financial institution processes the card.  While interchange is fixed, processing fees are negotiable.
  • Suggest purchase minimums.  A minimum purchase to meet the cost/benefit hurdle of accepting credit cards.  Note the term suggested - a minimum can not be required.
  • Raise prices.  In order to cover credit card fees a review of pricing structure may be required.
  • Lower fee option.  Understand that all types of processing are not equal.  In person and pin entered transactions can be the lowest fee.
  • Prepaid reloadable cards.  A reloadable merchant card carries a significantly lower fee.
  • Review alternatives.  On-line options are becoming available.  Will they work for your business?
Read more @ Tips for Cutting Fees