According to the U.S. Census Bureau, eCommerce sales for the 2019 second quarter rose by $146.2 billion. These sales were a 4.2% increase from the previous quarter. Do you own an online store?
If so, are you happy with your current eCommerce credit card processor? You might be considering opening an online store, but want to lower your costs. Either way, your credit card processing fees can add up, putting a dent in your profits.
Believe it or not, you can lower your eCommerce payment processing fees. Don’t know how?
We’ve got you covered. Here are the best four ways to lower your fees and keep your prices competitive.
1. Contact and Negotiate with Several Providers
You may think finding the best bank to open your business account with is the toughest decision. Yet, finding the right eCommerce payment processing provider is more difficult than you think. The nature of an eCommerce business may limit your options.
Don’t only consider a local bank. You should also contact several merchant services providers.
These companies specialize in helping businesses accept credit card payments. You may think their payment processing fees are set in stone, but that’s far from the truth. You can negotiate with these providers to obtain lower rates.
2. Consider Tiered, Interchange, and Flat Rate Pricing Solutions
Depending on your provider, you may receive several pricing options. Tiered, interchange, and flat rate are the three pricing models offered by most companies. However, not all providers offer these options.
The best pricing solution will depend on your budget and expected sales volume. When you shop around, you should consider payment processors that provide several pricing options. If you’re unsure where to start, click here to learn more about the typical pricing solutions and popular eCommerce payment processing providers.
3. Minimize the Risk of Fraud
Lowering your processing fees will also depend on showing your provider that you take the best measures to minimize the risk of fraud. Using a PCI Compliant Gateway is one way to protect your customers’ information through encryption technology.
Validating any transaction you enter manually is another way to minimize the risk of fraud. You can provide information such as the customer’s zip code and address to verify the identity of the buyer.
4. Set Up Your Terminal and Account Correctly
Setting up your terminal may seem simple, but it can cost you more than you think. If you don’t set up your account or terminal correctly, you’ll provide incorrect business information.
Consider automating your payment processing by choosing a provider that allows you to process them from your site. This practice will allow you to minimize human errors, therefore, thus lowering your fees.
Can You Find the Best eCommerce Credit Card Processor?
You may think finding the best eCommerce credit card processor is next to impossible. However, it all comes does to negotiating your payment processing fees and considering several providers. Talk to each of your potential providers and request information about their fees.
You should also ask them about their contract and cancellation fees. Some providers charge extra fees, such as yearly technology upgrades, among others. Before choosing an eCommerce payment processing provider, it’s vital to do your research to obtain the best deal.
Did you find this article helpful? Check out the technology section of our blog for more ways to improve your business.