- Published: Sunday, 28 May 2017 08:27
- Written by Super User
Tips For Saving On Credit Card Processing
As a small business owner, you know the value of every dime. To grow your business you must pay close attention to every expense. Unfortunately, accepting credit cards means incurring processing expenses.
Typically, credit card processing companies charge as much as 5 percent on everything earned from credit card sales, including interchange costs, processing costs, and even statement fees. Because most people pay with plastic rather than cash, you need to accept credit cards in order to survive. According to the latest statistics, by 2017 only 23 percent of all point-of-sale (POS) purchases will be made with cash. At the same time, a 33-percent increase in credit card use is anticipated. You can reduce your expenses. Here are some tips:
Before choosing a credit card processor, do some comparison shopping, since some providers have much higher fees for the same type and level of service. Most importantly, look for hidden fees by reading every word of the “terms and conditions.” You also need to choose a reputable company like . In addition to saving on processing fees, you gain access to other critical services such as , , , and more.
Purchasing versus Leasing a Machine
While it might seem as if leasing a credit card terminal is cost-efficient, in reality you will spend up to 20 times more than if you purchased it outright. The other issue is that leasing comes with a long-term contract that cannot be cancelled. The average cost of leasing a machine is between $40 and $70 per month, whereas the purchase of a terminal is anywhere from $200 to $400, depending on what you need.