Financials and Cash Flow

Five ways to manage payment processing costs

Use these simple strategies to help you manage the costs associated with payment processing fees. 

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Five ways to manage payment processing costs

Accepting credit and debit cards is convenient for your customers and can contribute to your business’s bottom line. Use these simple strategies to help you manage the costs associated with card payment processing fees.

1. Swipe or insert cards when possible.

Take advantage of lower “card-present” rates and swipe whenever possible. Avoid using a keypad to manually enter card information. 

2. Check for cost-saving programs.

Your merchant services provider might offer special rates for certain types of businesses and transactions. Regularly review your payment processing solutions. 

3. Avoid voice authorizations.

Voice authorizations have a higher risk of error and fraud, and can be more costly. If the customer’s card is declined at point of sale, ask the cardholder for another form of payment, such as cash, a check or a different card. 

4. Settle and respond in a timely manner.

Settle “card-present” transactions within one day when possible. For “card-not-present” transactions, settle transactions within one week. Respond to media retrievals (when customers request additional information about a transaction), chargeback notices, and disputes in a timely manner. 

5. Avoid amount mismatches.

Discrepancies between authorization and settlement amounts can lead to higher fees. Keep authorization and settlement amounts consistent.

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