Here are the last three of seven simple, no-cost ways to reduce the cost of debit/credit card processing for your company by as much as 50%!

5. Swiping vs. Key Enter

Save 1% or more off card transaction costs by swiping cards instead of manual entry.

Swiping the customer’s credit card magnetic stripe through a terminal has much lower fees than key entering the credit card number. The difference in a swiped versus a non-swiped sale is usually 1% or more.

There are some creative ways to increase the amount of swiped credit card sales you take.

First you can bring the customer to your terminal. Find a reason to have them come to your location.

Another option is to get a portable terminal. Many terminals have a feature called “store and forward” where the machine can run without a phone line as long as there is power to the terminal. The sale is stored until a phone line is connected at a later time.

Lastly, a wireless terminal is a good way to get more swiped transactions. New technology allows wireless terminals to operate the same as cell phones and have coverage wherever a cell phone does. Imagine walking a terminal right up to the customer without wires and swiping their credit card!  You save from a reduction in fees and the customer loves the convenience.

6. Monthly tiered account charges

Check your monthly statements for changes in your tiered rates.

If you’re using a traditional “tiered” rate plan where the 300+ Interchange categories and charges are aggregated into three or four tiers, you should make a habit of comparing your current statement to the previous month’s. It’s usually easy to spot additional charges in a specific tier than usual in a given month.

If this happens to you, don’t hesitate to call your processor for an explanation.

7. Interchange Optimization

Find the lowest possible transaction rates with Interchange Optimization reports.

The reason for the more than 300 Interchange categories and related fees charged by the card’s issuing bank is data compliance; banks charge differing amounts based on the ease with which data captured during the transaction integrates with its computerized processing systems. The more compliant data captured (think swiped credit or debit card transaction), the less the bank typically charges.

Staying on top of ever-changing Interchange fees and your specific business’ card transaction patterns, and reacting accordingly is known as Interchange Optimization. See future blog posts for more information about Interchange categories and how they effect your processing rates.

For more information

For more information about ways you can reduce the cost of processing debit and credit cards at your business, please contact Payment Processing Consultants (PPC) at 1-888-282-5384.

Any tips you'd like to share?

We'd love to hear from our customers and as well as users of other card processing companies.

There are simple, no-cost ways to reduce the cost of debit/credit card processing for your company by as much as 50%! Here's the first of four money-saving tips.

1. Earn the lowest rate using Address Verification Service (AVS).

Earn the lower of non-swiped rates by fully matching addresses and ZIP codes.

If your credit card terminal is not prompting you for the billing address and zip code of a manually entered credit card number, you are paying a much higher rate for that transaction. Visa and MasterCard now impose a surcharge if you do not enter address information or if the information does not match the cardholder's billing address.

Visa and MasterCard have experienced higher rates of fraud when a customer does not readily know the billing address of the card. When credit cards are stolen thieves rarely have this information at their fingertips.

If the address does not match your printed receipt it will read "AVS mismatch." The card will still be approved if there is sufficient credit, but armed with this information you can now make a better decision as to if you want to take this sale. Even though you have an approval, a mismatched AVS will result in a higher rate charged to your business. A full match of the address and zip code is the only way to earn the lower of the two non-swiped rates. This rate is usually referred to as the "mid-qualified rate."

2. Reduce fraud with Card Value Verification (CVV).

Reduce fraud with easy-to-verify security code matching.

On the signature panel of newly issued credit cards there is a three-digit number called the Card Value Verification (CVV). Credit card terminals can be programmed to prompt for this number as a way for businesses to check potentially fraudulent purchases.

When a credit card terminal dials for authorization it will also check Visa/MasterCard's computers for a match of the CVV. Visa/MasterCard doesn't offer a lower rate for entering this number, but it will help detect potential fraud. A mismatch of the CVV will not decline the approval of a card, but an error message will appear on the terminal screen and the receipt it prints.

You have every right as the merchant not to accept payment of a transaction on a card that is suspicious.

3. Debit Cards cost less to process than credit cards.

Steer customers toward debit cards that cost less to process than credit cards.

Almost all debit/check cards issued by banks today have a Visa or MasterCard logo on them. This means debit cards can be run through your credit card terminal as if they were a standard credit card. Visa/MasterCard have recently offered a lower rate for processing debit cards than credit cards. Check with your credit card processor and request this lower rate for debit cards that should be about 1.55%.

4. Batch and close out your terminal every night.

Avoid surcharges by setting up your system to automatically batch out each night.

After a credit card sale is run there must be a "batch out" for the sale to be finalized. Batching (also called "closing") is usually done at the end of a business day. Batching out settles the sale and starts the process of depositing the sale amount into your bank account. If the batch close is done more than 48 hours after the original sale (authorization) the rate for these sales will be surcharged. This surcharge is usually 1 to 2% of the sale.

By setting a self-reminder to batch out the terminal every night a merchant can ensure they are not penalized. Another option is to have your terminal set up for "auto batch" where the terminal closes itself out at a set time programmed into your credit card terminal. Check with your credit card processor to see how you can set up auto batch or auto close.

Any tips you'd like to share?

We'd love to hear from our customers and as well as users of other card processing companies.

Up next...

the last three money-saving tips in this list. (We've got plenty more.) Thanks for reading!

As the end of the year approaches, I have been taking time to reflect on these past 12 months. My year has been filled with excitement, with disappointments and with some great victories. As I look back on all the promises that were made in my life, I'm redminded of the one person who never lies, who always fulfills his responsibilities, who is committed to doing what he says he will do. The most accountable person in the world.

Santa Claus

My daughter no longer believes in Santa, she's in high school now. My two young boys are big believers. They are counting the days until December 25th. Even my 3 year old knows the deal and what to expect. Santa is THAT accountable. There's no question as to whether or not he will be coming, there's no doubt that he will stop by when he says he will (sometime between bedtime and Christmas morning). Santa Claus knows what he has to do and we're planning most of our morning around him fulfilling his job. I can't help but wonder; how much different would our world be if people could be held to that same level of accountability? Both in business and in our personal lives. Its phenomenal.

Owning a company is a big responsibility. You can reap great rewards, but at big risks. I rely on a lot of people. How long do you think I could rely on them if I didn't make payroll every 2 weeks? Don't get me wrong, I have some great employees that have been with me for a long time, some over 10 years now. But how would our relationship change if I wasn't held to a high level of accountability? How many days after Friday would they work if their paycheck bounced? So shouldn't I be able to hold them to the job they said they would do? Not everyone I hired in the last 12 years still works for me today. Why? Accountability is the number one factor. They simply did not do the job they agreed to do. It's not only a waste of my time but theirs as well.

I'm thankful for the people in my life who I can hold accountable. These individuals make my company the great organization that we are today. I appreciate their hard work, their sacrifices, I appreciate their talent and their creativity - but most of all I am thankful for them coming in every day and doing what they said they would do. It's that simple. Santa Claus put presents under our tree. He does it on time every year. Santa eats a few cookies. And we all do the jobs that we agreed to do, through thick and thin. Just without the red coat and sleighbells.

We are proud to announce the addition of a PPC Blog.  Please stop by and visit often.  You will find a variety of information on this Blog ranging from PPC company posts, industry posts, and life posts.  Feel free to commment on anything that you read - agree or disagree.  We will repsond as soon as possible.

Good luck and happy writing.