Lowering and capping your merchant fees
When many businesses begin trading they make the decision to allow their banks to sort out their payment processing solutions. This is primarily because they believe it easier to just let the bank do it because they already have a business account with that bank. This is not the case. Choosing an independent payment processor can make the world of difference when setting up card acceptance for your business.
How can an independent payment processor be better?
Independent payment processors have a special arrangement with the banks, and this allows them lower rates that have been calculated by the sheer volume of business they send to the bank. Because of this, an independent payment processor can pass a significant amount of their savings onto their customers.
Merchant fees are often higher with banks because they don’t need to lower their fees in order to get new business. The banks are happy to deal with the payment processing needs of their larger clients who can afford it; sadly for SMEs (small and medium enterprises) this means that they are often paying the same rate as a business much larger than them; thus curtailing their potential for making more profit.
So are independent payment processors better for small business?
Yes they are. Small businesses need to be paying low merchant fees and they need to keep it that way for as long as possible in order to make a decent profit on their transactions. Many independent payment processors specialise in offering solutions to SMEs and in some cases, depending on the individual risks involved, they can give individual quotes that are dependent on the needs of individual businesses.
Capping the merchant fee
Another facility offered by some independent payment processors is the opportunity to cap individual businesses merchant fees for the duration of their contract. This enables bonuses for both the business and the payment processor; the processor gets their client for a longer period and the business gets to save a lot of money by having their fees capped whilst many other payment processors and virtually all the banks increase their fees in line with inflation and other factors. This is the perfect way to allow a small business time to grow without having to pay unnecessarily high merchant fees that keep increasing as the business is trying to grow and expand.
The next move
Get a quote from your payment processor today and see how they can help you with lower fees and capping your merchant rate. If you already have payment processing services you can always switch to a cheaper one without much trouble at all.