Tips to manage card-processing costs

While there are fees for processing electronic payments, you can manage the costs with these simple strategies.


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Published: October 29, 2015


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Accepting electronic payments provides added convenience for your customers and potentially more revenue for your business. While there are fees for processing payments, accepting credit and debit cards are a necessity for most businesses. Cost can be managed with a few simple strategies.

Ask your customers to swipe or insert cards whenever possible. This way, you'll take advantage of lower card present rates. If you need to manually enter card information, minimize costs by answering all of the questions prompted by the card terminal.

Ask about money-saving programs. Certain businesses like movie theaters, fast food restaurants, and ice cream shops may benefit from large quantity, low-ticket price programs. Ask if your business qualifies.

Send your card payment transactions to your processor on time to avoid higher fees. Settle transactions within one day for in-person transactions, and within a week for online and phone orders. Respond to inquiries, disputes, and chargebacks in a timely manner to avoid related costs.

Avoid authorization and settlement amount mismatches. When possible, make sure the authorized amount matches your settlement amount. For online transactions, settle only for the items shipped. This will help reduce discrepancies and related fees.

If a large number of your customers pay with credit cards provided by their employer for work-related purchases, your interchange rate may be affected by the level of data you provide to your payment processor. Talk to your payment processor to find out if capturing additional transaction data for these type of corporate or commercial card transactions could help improve your rate.

Accepting card payments at your business doesn't have to be costly. Implementing these simple strategies can help you take control of your payment processing costs and start saving money.

For more information about Wells Fargo Merchant Services, contact your local Wells Fargo representative or visit

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