“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 FordThe 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?