How to Reduce Credit Card FeesTax Professionals' Resource
July 10, 2013 — 1,650 views
Swiping a credit card at a store might be the easiest thing to do, but it has its own problems. A credit card is a luxury that comes at its own special price. Every time you swipe a credit card, a little amount gets deducted from your account and adds up to your processing fee bill. This might be a small amount for that particular transaction, but when it adds up, it is a formidable expense. There is a reason why many companies are constantly trying to sell you a credit card. It's not because they're doing you a favor. It's because they benefit out of the extensive processing fee. There are a few ways in which you can try and minimize your credit card fees. Here are a few suggestions.
Expand Your Business
It is a well-known fact that the bigger the company, lower the processing fee. This is because credit card firms give preference to bigger and more established accounts. If your company is expanding and is receiving higher frequency and intensity of payments than a few years ago, then you can discuss lower processing rates with your merchant service provider.
Credit card dealings are typically divided into three levels for discount rates. The non-qualified rate is when cards are physically inserted and no address verification service is employed. The mid-qualified rate is for manually inserted card numbers with the use of an Address Verification System (AVS). But you can get the cheapest qualified rate only when the card is physically swiped through a credit card reader. So it's always advisable to swipe physically at all times through a credit card reader.
Don't use a Wireless Credit Card Terminal
The advantage of using a wireless credit card terminal is that it is portable, compact, and convenient. But you don't really need it to swipe your credit card. You have to pay a good sum for the hardware and many times, sign a contract. This hardware has to be re-programmed with every new update, otherwise it would become obsolete. Upon all this, you have to shell out a wireless service fee. It is always a better option to use a net-connected laptop or a mobile credit card processing app.
Keep a Check on Monthly Statements
More often than not you are bound to find a few unannounced fee hikes in your monthly statement. Always keep yourself informed of what you are being charged for, and how much. Do not let any fees go unquestioned because you can always demand an explanation from the credit card company.
Change Service Providers
Sometimes, we stay on with our current service providers because it is simply inconvenient to change providers, even though there are other companies out there with better rates. The market is always coming up with new schemes and initiatives. Take advantage of the competitive market, do your research and do not hesitate to switch to the provider with the best rates.
We can efficiently minimize our monthly credit card fees by making some simple decisions with a combination of awareness and smart thinking. Credit card companies want to accrue more fees, but don't give them a chance to charge more than they have to.