• Ask a credit card processing specialist to analyze your merchant processing statement and provide you with a cost-benefit analysis (rate comparison) of the fees you are presently paying. Compare the costs that the new provider will impose. Depending on your present charges, the Agent should be able to cut your rates and save you money. Make sure you are given a full explanation if you have any questions about your rates or the most efficient manner to process cards. The most crucial step in changing your merchant services is this one.
• An Application for a become a credit card processing companymust be completed once you have accepted the Discount Rates that will be applied to your account and the Contract’s terms. In order for your application to be granted, you must submit the required data. A copy of your business license and a voided check for the account where you want your money deposited must be sent with the information you gave for the merchant application. The process takes a few days, maybe a week.
• After your account was accepted, an account executive will get in touch with you. In most circumstances, your new processor can reprogram your existing Point of Sale Equipment (Credit Card Machine). This implies that switching your processing company DOES NOT require purchasing new equipment. Your terminal needs to be reprogrammed, though. Your agent will either perform the programming at this stage or will walk you through performing it yourself. Your equipment should only need to be downloaded for 20–30 minutes. Only at this time will you be unable to accept bank cards (Credit Cards, Debit, or ATM). Therefore, plan your download for a period when business is slow.
• Lastly, to avoid being charged a monthly minimum and statement fee, send a brief letter of cancellation to your present credit card processing company. Ask your agent if they have one already written. Business Name, Merchant Number (found in the upper corner of the merchant statement), Name, and Owner’s Signature should all be included in the letter. To ensure that no additional charges are applied to the business bank account, it should simply state to shut the account immediately.
My twelve years of experience in merchant services and business consulting have taught me that one of the most important things that companies can do to survive in these uncertain economic times is to become more effective at reducing expenses. There are still costs that are frequently disregarded but might significantly reduce the cost of operation for businesses.
I’m talking about the fee that businesses pay for merchant services (bank card processing), which may be a very expensive expense. Depending on their monthly volume, some firms are charged hundreds or even thousands of dollars annually for this service. In general, companies must give it in order to offer their goods and/or services. The majority of customers and clients use this as their preferred method of payment nowadays, and it also accounts for the majority of sales.
However, if adjusted properly, it can have one of the biggest effects on reducing operating costs relative to the sum paid for this crucial service. A merchant must not only have the best rates and fees available, but also have a thorough understanding of how these fees are assessed, as all merchant processing is billed to a firm in the form of Rates and Fees. So they can avoid being dropped to higher tiers and incurring more fees, they might bargain with their provider or request quotations from other providers.
The following should be taken into account while attempting to reduce business expenses for credit card processing:
Get a Cost/Benefit Analysis by asking a become a credit card processing company specialist to explain in detail what is being charged in the merchant statement and to provide a comparative quote between what is being charged at the moment and the rates and fees that they would impose at all tiers. He or she should be able to explain the differences between each rate and how to avoid paying the higher discount rates. Additionally, ask about the benefits of pin-based debit, How to get quicker deposit times and accept credit cards more effectively by using the Address Verification and CVV code on the back of all credit cards. It might be required to change Merchant Service Providers if, in essence, it has been determined that doing so is in the merchant’s best interest. Remember that switching from one credit card processing company to another should be a seamless transition if done properly and shouldn’t be viewed as a protracted procedure. Verify the account conversion experience of your agent.