Just starting out with your small business? Finding great credit card processing rates may seem impossible, but there’s hope. By following these simple tips, you’ll be able to secure credit card processing rates that make big businesses jealous.
Here are Stax’ Top 5 Credit Card Processing Tips.
Avoid Non-Mandatory Contracts
No one likes to be stuck in a contract, from cell phone contracts to credit card processing contracts. Contracts are not mandatory, especially contracts with cancellation fees. Most processors will actually waive that fee if you tell them no, so don’t be afraid to speak up. If you can, find a company that doesn’t offer contracts.
Find Affordable Terminals and Avoid Leases
Credit cards and EMV terminals are cheaper than you think. A good terminal can cost around $250 these days, so don’t try and lease one if you have the money to buy one upfront. If your processing company offers to include one in a contract, always make sure to read the fine print to see how much they’re charging you for it. It’s usually better to buy one yourself and get a cheaper rate.
Choose Interchange, Not Tiered
If you’ve had a business before, then you’re probably used to tiered pricing. It’s expensive and unneeded with its surcharges, so stay away from it at all costs. Instead, go for interchange pricing. Interchange results in lower costs and doesn’t include any surcharges. Paying interchange rates instead of tiered rates is a common practice among big businesses and it’s the best option for you.
Always Know Where Your Money Goes
Before you start looking for a good credit card processing rate, you need to do your research. Learn where your money goes by looking up interchange and assessment fees. Interchange, as we mentioned earlier, is the best way to go when choosing a pricing option. They are a fixed credit card processing expense, and they’re the same for all processors. Here are the Mastercard and Visa interchange fees, for example.
Assessments are also a series of rates and fees charged by Visa and MasterCard, and they are the same across the board.
Just because you’re a small business doesn’t mean processing companies can treat you like one. Credit card processing rates are the same for all businesses, big or small, so don’t let them make you feel insignificant as a small business starting out. The bigger you think, the smaller your rates.
Many of our tips apply to how Stax works, with no contracts, surcharges, and optimized terminals that pair perfectly with our subscription pricing plans.
Request a custom savings quote to see how Stax Pay can work for you.