Reducing the 3% payments fees

  1. Just my 2 cents, but paying credit card fees is just the cost of doing business. I don't think of them as any different than taxes in that sense (a necessary evil). If you can't afford the fees, then you need to build them into the cost of the product. The only way I've seen a small business successfully get around the credit card fee problem is to not take credit cards at all. I'm always surprised when a business succeeds without taking credit cards, but I've seen it happen plenty of times, usually at bars or restaurants.

  2. I can recommend Poynt as a very good processor and my fees went from 3% to 1.2%. Much nicer machine and the transition was simple. They have been so easy to work with always pay on time.

  3. 1.2%?? Are you sure? Poynt site states 2.3% on in person transactions. 1.2 is unheard off. Does it include Amex?

  4. Is that your effective rate? Or the advertised pass through rate? Take total money processed and all fees to get your effective rate. Include any monthly fees or charges aside from the per swipe fees

  5. I went to a coffee shop just yesterday and they told me “cash only but if you don’t have it just pay us next time.” I get irked by cash only businesses but I understand not wanting to pay a 3% fee. I would just recommend raising your prices and accepting credit card services are convenient for customers.

  6. Shop it with a payment processing broker. They'll ask for a few months of statements from your current processor and then shop your rates.

  7. Customer convenience is especially important in places like coffee shops. Almost no one will notice a 3% price increase but everyone will notice a more inconvenient way to pay. They'll also start switching over to the coffee shop down the road that isn't as inconvenient.

  8. What is your processed sales and risk profile like? The fees are often negotiable if your revenue volume is high enough and your chargeback and fraud is low.

  9. This is why you see a lot of fast food places encouraging customers to pay using their app. I load my account with $75 and use the app to pay for my $6 meal for several visits. It is more convenient for me, I get rewards points and the restaurant saves a bunch of money on processing fees if there is a flat fee + %

  10. But to load the app are you using a credit card? If so, the fee gets taken at that point. So it is the same thing.

  11. Offer an incentive for customers that pay by Zelle. It’s not for everyone, but it’s a “pay by mobile” option w zero transaction fees.

  12. What is Zelles charge for receiving money at a business? I know they have a fee for this, but I'm not able to find it. Of course you can do it into a consumer bank account, but don't do it often and a lot then otherwise someone will notice and not be happy.

  13. I shopped around and negotiated a lower pass through fee and per swipe fee each time. Currently I have an effective rate of 1.8% since many of my clients use debit cards which gives me a lower fee.

  14. Everyone in this thread is getting obliterated by their processor and it’s easy to see lol. Go negotiate with your rep or add a service charge to your orders

  15. I'm not too familiar with it but you could possibly look into Interchange Plus companies. Instead of charging you a flat rate, they charge you what mastercard/visa charges and they add like 10 cents to that amount. They might be able to save you money. With that being said I just use a CC processor that charges me the flat 3ish% and focus my attention elsewhere in my business.

  16. You will not be able to do instant ACH transactions. Also, processing fees are the cost of being in business. Also, you can implement a cash discount program where you pass 3.99% to your customer that pays by credit card and no additional fee if they pay by cash. In addition, stop accepting credit card payments under $10.

  17. Try negotiating with your processor.I assume majority of your transactions are in person, so there is no way you should be paying 3% rate. We pay 1.89% flat (Amex included) For in person transactions. Happy to help out if you need it - just shoot me a message

  18. I’ll have to jump in and recommend becoming a HUMBL Merchant. 1.75% + .10/transaction. Plus, holding money in your HUMBL wallet in a USD earns you 7% APY. Offer that as an option coupled with a discount to get new users to download and utilize the app and before you know it, hopefully most of your customers will become HUMBL users.

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