If you’re a small business owner, then you know that credit card processing services can be expensive. The good news is: There are some easy ways that merchants can lower their credit card processing fees, while still getting access to all their services. Here are 4 cost-cutting tips for saving money on your credit card processing.

Process Debit Cards as a Credit Transaction

When customers pay using a debit card, there are two options available: signature debit transactions and PIN network transactions. During a signature debit transaction, the debit card is processed like a standard credit card, and the customer signs the receipt to verify the purchase once the transaction is completed. PIN network transactions, on the other hand, require the customer to enter their PIN number, and the payment will be routed through the PIN debit networks, which charge an annual fee to merchants.

On top of forcing merchants to pay additional fees, PIN network transactions are also routed at random, meaning that the merchant has no choice which network will be used to process the transaction. As a result, merchants who allow PIN transactions get hit with multiple fees from multiple PIN networks, none of which they consciously chose to work with.

Though it may be slightly inconvenient for some of your customers, running all debit and check card payments as credit transactions will lower credit card processing costs.

Try Not to Enter Card Info Manually

When credit card numbers are entered manually, merchants face additional charges from their credit card processing company. Since manually entered credit card numbers are more likely to be fraudulent transactions, Visa and MasterCard has assessed a higher fee with this type of transaction. Using a card reader is more efficient and costs less in the long run.

Impose a Minimum on Credit Card Sales

For businesses that do a lot of smaller transactions, the best way to lower their credit card processing fees is often to avoid them at all. Many retail outlets in particular end up paying out most of their profit margins to credit card processing companies when customers make purchases of less than $5 or $10; when these transactions are completed with cash, on the other hand, the merchant gets to keep the entire amount.

Restricting credit card purchases to over a certain dollar amount is perfectly legal, as long as you hang up a sign letting customers know what the minimum purchase amount for paying by credit card is.

Compare Processing Companies Carefully

Credit card processing cost cutting

Not all credit card processing companies are created equal, and not all of them have businesses’ best interests at heart. Some credit card companies offer low initial rates, but then charge expensive additional fees that in the end make them more expensive than their competitors. When choosing a credit card processing company, carefully compare the contracts each of them offers, and what total payments are for each after all the fees have been included.

Another good way to check and see if a credit card processing company is reliable is to search for what their customers have to say about them online, and see what their record is with the Better Business Bureau.

Looking for honest and transparent credit card processing services? Contact a Leap Payments professional today at 800-993-6300.