Lower Credit Card Processing Fees: Negate Security Challenges, Negotiate a Better Deal

by | Jun 30, 2023 | business credit cards | 0 comments

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Lower Credit Card Processing Fees

Accepting credit card payments sound right. Traditional and online retailers acknowledge the benefits of credit card processing. Where they get lost are the fees. Or shall we say the charges they were not aware of? Who are merchant processing providers? What role do they have? Customers use their credit cards. Banks charge them. What else is there? Business owners miss a crucial link. Ask yourself again. Who makes credit card processing hassle-free and convenient? We’re talking about merchant convenience. Customer convenience comes at a later stage. Begin your journey of knowing how to get lower credit card processing fees. 

Try learning about payment processors, and you can have some clues about how to get the lower credit card processing fees. Payment processing involves your customer, the card issuing bank, and payment service providers (PSPs). The next question knocks on the door: Why can’t I have a merchant account with a bank? The answer is the lengthy application process and other qualifying metrics. 

Someone starting his venture or learning to accept digital payments doesn’t want to have additional steps to go through. Merchants gain by opting for payment processors. Once you know the workings of the system, you’ll have an easy time lowering credit card processing fees.

Lower Credit Card Processing Fees: Know the System as an Insider

Business owners should begin by knowing their business requirements, monthly transactions, average ticket sales, or chargebacks. You should collect data to negotiate lower credit card processing fees. Merchant processors consider these factors. It helps to assess the risk value. Next, you need to gather information on pricing models and processing fees. 

How do you find your chances of selecting the best credit card processor? 

Acquire knowledge to enhance your chances of finding the best rates. Merchants can secure lower rates by underlining the difference between Payment Service Providers (PSPs) and Merchant Accounts. The knowledge of their business and how things work in the industry cancels out the probability of making half-baked decisions for most businesses. Know the benefits, compare features, and evaluate which service helps improve the bottom line.

Fees: What You Know, What You Don’t Know

Learning about credit card processing fees requires intense effort. Why is it crucial to know several associated charges? You should know what makes a part of your monthly costs. The list includes transaction fees, voice authorization fees, monthly fees, monthly minimum, chargeback fees, app subscription fees, equipment lease fees, etc. Also, the flat-rate pricing, interchange plus, and tiered pricing. You should know which service ticks more boxes and at what rates. 

You must have learned how working with a payment service provider favors your short and long-term goals. There are no lengthy contracts. How does that sound? You have one issue less to think about. 

Chargeback and Fraudulent Activities: Profits Short-Lived

Chargeback rates cause a lot of financial and reputational damage. Merchants looking to lower credit card processing fees have something they can control and fix at their ends. A high chargeback fee (up to $100) can undo all the good work done. The same is with fraudulent activities. A payment processor would impose a higher processing fee to cover the risk factor. As a business owner, you think you have some control to reduce fraud and chargeback ratio. What have you learned about credit card processing fees so far?

Lower Credit Card Processing Fees: Build a Business Strategy Around

Merchants should prepare a strategy to encourage customers to pay by cash or ACH Payments. ACH Payments may not be an ideal option except for recurring billing. The idea is to offer discounts or something to save on credit card processing fees. Do you have a counter-strategy to stop someone from using an international credit card? That’s why we mentioned discounts. Check with the customer if they can use a different card.  

Discount Campaigns to Dodge Higher Processing Rates

Customers using reward-based cards is a norm. Merchants find it a little discomforting as they carry a higher processing charge. How do you overcome the riddle? You want to make the sale and also save on those sales. Highlight the benefits of using standard cards. Encourage them. Bring out your creative selling skills. Make it worth redeeming. With customer benefit at heart, you’ll find something to make the point relevant.

Heard of Level 3 Processing?

Apart from the technical metrics to qualify for Level 3 credit card processing, businesses should know its benefits. The backend benefits include lower processing fees and faster payouts. The commercial benefits include increased revenue. How? You can offer discounts. Think of giveaways. Have you got ideas on how lower credit card processing fees helps generate more revenue? When customers know they get discounts, they may spare a minute to share other card details. The card issuers lower the credit card fees upon sharing details and pass the benefits to merchants. Have a strategy in place. Start pitching the idea to customers in bits and pieces. Don’t make it sound like a sales pitch. Make them a participant. The extra security aspect may get their attention and convince them. 

Merchants should maintain PCI Compliance. If you don’t or haven’t given it a thought, you should go back and put it at the top of the list. It could wreck your reputation and cause irreparable damage. The financial and legal battles aside, you lose trust. Another critical aspect is to move into a month-by-month contract. Give your merchant service provider reasons to have lower credit card processing fees. 


Knowledge is wealth. The adage stands true in merchant accounts too. Select a top service provider with lower credit card processing fees. Gather information about your business, research and compare, and shop for the best merchant account provider. Your eagerness to learn and inquire proves decisive. Several factors work in favor and against credit card processing fees. Make your website foolproof on the security front. Don’t give PSPs a reason to charge you higher or not negotiate.