How to Lower Your Credit Card Processing Costs

In modern society almost every business takes credit or debit cards on a daily basis. When one accepts a credit or debit card there is always a fee associated with accepting it. The credit card processing company charges a merchant a small fee so that they can process the credit card and then forward the money from the transaction to the bank so the merchant can then be paid. However, there are several different ways in which a credit card or debit card can be processed. This can often result in a frequently confusing statement of fees each month and many do not know what they have done to cause the increase in processing fees. There are many things that one can do to counteract these higher fees and all that one will need to do is to follow a few simple rules to do so.

First, it is imperative that as a merchant one tries to always swipe the customers credit card no matter what. If the transaction has to be keyed in the credit card processing service will see this as a potential liability. The reason that the processing service will see this as a potential liability is that without actually having the credit card physically swiped through the machine there is a chance that someone could just be putting in a fraudulent credit card number that they have stolen from another customer.

Second, as a merchant one must understand that there are often different levels in which a transaction can qualify. Each level has a different rate that is attached to it. These levels are often known as qualified, mid-qualified, and a non-qualified rates. A qualified rate is when a customer or merchant swipes the credit card and everything goes smoothly. This rate is the lowest rate that one can qualify for. A qualified rate is what most merchants strive to get as they can be as low as one percent. A mid qualified rate occurs when the merchant has to key in the card number or information. This rate is also given with certain types of rewards cards as well. As with all transactions doing address verification, which usually just consists with typing in the customers zip code, makes the rate either qualified or mid qualified. A non qualified rate is the rate that everyone would like to avoid. This is the highest rate that one can be charged on a transaction. A non qualified rate is when the merchant has to type in the card information and there is no address verification done. This rate can also affect an entire batch of transactions when the credit card terminal is not batched out at the end of every business day or within the time frame that has been given by the particular credit card processing company.

Overall, there are many things that one can do to have lower rates. One of the best things that one can do would be to talk to their particular credit card processing company to see if there are any additional things one can do to lower their rates. The rates will be something that were agreed upon at the beginning of a merchant taking credit cards however they may be willing to negotiate and give you a lower rate.

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