5 Ways to Reduce Processing Costs Without Switching Processors

Switching credit card processors is not always practical or necessary. Whether you are locked into a contract or simply satisfied with your current provider's service, there are several ways to reduce your processing costs without making a switch.

1. Negotiate Your Current Rates

Call your processor and ask for a rate review. If you have been a loyal customer with steady volume, many processors will reduce their markup to retain your business. Come prepared with competing quotes to strengthen your negotiating position.

2. Eliminate Unnecessary Fees

Review your statement for fees that can be removed: PCI non-compliance fees (complete your SAQ), paper statement fees (switch to electronic), minimum processing fees (increase card acceptance to meet minimums), and any fees not in your original agreement.

3. Optimize Your Settlement Process

Settle batches within 24 hours to avoid interchange downgrades. Enable auto-settlement on your terminal. Verify that your MCC (Merchant Category Code) is correct for your business type.

4. Reduce Keyed-In Transactions

Keyed-in transactions cost more than chip-read or tapped transactions. If your staff is manually entering card numbers due to equipment issues, invest in a new reader. The cost of a $300 terminal pays for itself quickly through lower interchange rates.

5. Implement Dual Pricing

You can implement dual pricing with most processors. This shifts the processing cost to card-paying customers, effectively reducing your net processing expense to near zero.

Mogil Partners can help you implement all five of these strategies with your existing processor. Contact us for a cost optimization consultation.