Are you looking for ways to lower your business’s operating costs? Tackling your credit card processing rates, one of the biggest expenses for small and mid-sized companies, can be an effective way to reduce your month-to-month businesses expenses. Even small changes in your processing rates can lead to high-percentage savings, which allow you to reinvest in your business or pocket some extra cash. But how big of a difference can reducing credit card processing rates make in your monthly expenses?
Credit card processing fees vary depending on the processing company you work with, the types of cards you accept, and whether customers choose to use the debit option on their bank cards. However, most credit processing fees contain two basic components: a flat fee per swipe, and a percentage of the total amount charged. Here’s a quick scenario to illustrate how negotiating credit card processing rates can help you save lots of money over the course of the month.
Let’s say you run a small restaurant that takes in about $25,000 per month in credit card transactions. Each bill is roughly $50.00, so you process 500 different credit card transactions. If your credit card processing company takes 2% plus a $0.25 processing fee, you’ll pay $625 every month just to run credit card transactions. This is in addition to other fees your credit card processing company may charge you, such as machine rental and software fees. Overall, you’ll be paying over $7,500 a year to take credit cards at your business.
Contacting a credit card processing consulting firm can help you lower your credit card processing fees. Even a modest decrease to 1.5% with $0.20 for every transaction could save you $150 every month and $1,800 per year. That’s nearly a 25% decrease in your credit card processing fees!
Now that you’ve seen how lower credit card processing fees can help you save money, contact Merchant Advocate today at (732) 727-2073. We specialize in helping small and mid-sized businesses like yours save money on credit card processing fees.