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Comparison Shop Banks to Lower Credit Card Fees
– March 4, 2011
Credit card processing fees are determined by a number of variables, including:
- The number of transactions;
- The dollar amount of those transactions;
- The type of equipment used and
- Your ability to negotiate fees with the bank.
Depending on these factors and on the card that is used, processing fees can range anywhere from a low of 1% to 5%. If some company is raking 5% off the top, they are actually taking a considerable chunk off your bottom line.
An easy way to slash these expenses is to negotiate a processing fee reduction with your bank. If needed, set minimum charges for credit card sales or better yet, put a surcharge on them.
It is important to recognize these processing fees as expenses that can be controlled.
This is Profit Enhancement Idea #38 in Heard, McElroy & Vestal's 100 Ways: The Profit Enhancement Process series. The purpose of the series is to assist business owners and managers in cutting costs and increasing revenues by working smarter, not harder.
Walker Coburn
318.429.2109
wcoburn@hmvcpa.com
Walker is an Audit Manager in our Shreveport office. He received his Bachelor of Administration in Accounting and a Masters of Accountancy from Millsaps College in Jackson, MS. Prior to returning to his hometown of Shreveport and joining Heard, McElroy & Vestal, Walker worked for KPMG in Jackson and Memphis, and more recently as a financial reporting advisor for FedEx Corporate.
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