Thursday, 17 January 2013

Reducing the pain of payment processing

As we are all aware, e-commerce is fast becoming the preferred shopping channel for both consumers and businesses, accounting for 16.9% of the total sales in 2012, according to Index.

With businesses placing more emphasis on this channel, increased revenue and usage will be seen. However this good news, also results in growing costs of running these payment services, which include ever-increasing: transaction charges, gateway fees and merchant account monthly fees.

But fear not! There are steps you can take to help minimise your monthly bill and still have a payment service offering that supports and enhances your business.

Here are our top 5 tips to consider to reduce your payment processing fees:
  1. Switch and save: In January especially, many payment processors will be offering introductory offers to get you to switch to their service. These may include reduced monthly fees, reduced transaction and gateway fees, reduced or waived point of sale monthly fees, creating a very compelling argument to switching provider.
  2. Price can be negotiated: Even though you may think your current payments processor is offering you the best rates, it is always worth challenging them to see if you can negotiate the price you are paying. Even if they can’t reduce your processing fees they may be able to offer you additional services as part of your current package.
  3. Integrated services: When researching alternative providers, an important factor to consider is whether they offer an integrated service. This can be by offering your payment services integrated into one management system or by only having to go through one provider for all your services. If you have an integrated service it will save you valuable time when reconciling your accounts, and will crucially give you more access and control over your cash flow.
  4. Research new solutions: With all the changes in the payment sector, new solutions are constantly being developed and released to support businesses. Some of these new solutions can help in reducing your payment processing bill, including mobile payment solutions that enable you to take payment ‘on the go’ without the cost of a standard bulky card processing machine.
  5. Bundled packages: It can be very useful to carry out a review of the areas you are incurring the most cost on your payment processing, as there may be savings you can make by adapting your package or going onto a bundled pricing package where you pay a single rate for multiple services.
If you are considering switching payment processing processor as part of reducing your monthly bill, have a look at our 10 reasons to switch article and our guide to switching.

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