A good question. The cost of payment processing seems to something most businesses just accept. While its true there is some flexibility from vendor to vendor there is one way to save a ton of money on your payment processing. Start accepting checks or ACH payments.
Credit card transaction fees include monthly, per transaction, and usually a percentage of the transaction. When you take a check your don't have to pay the percentage of the transaction fee. Why? MasterCard and Visa interchange fees are passed on to you the merchant.
It gets worse if you don't have a merchant account and use a company like 2Checkout or Paypal your per transaction fees will eat up most of your profits. If your serious about business please get a merchant account!
The best way to save money is to get a merchant account and accept ACH transactions (checks). All that is needed from the customer is a transit routing number and an account number. These are clearly printed on all checks.
Here is a very simple example for a $5,000 transaction.
$125 2.5% of the transaction
.30 per transaction
$125.30 Fee total
.30 per transaction
$.30 Fee total.
Start taking checks today. Its as easy as taking a credit card and the savings are tremedous.
Accepting credit card and ACH payments can be a pain for any size business. We try to help by keeping you informed on current trends and other industry news. Topics covered include: payment gateways, merchant accounts, e-commerce shopping carts, virtual terminals, and other topics relating to e-commerce.
Friday, November 28, 2008
How Can I Save Money on Payment Processing?
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