Unless you find appropriate ways to process payments, you can incur some really high costs. But with a good approach, you can cut costs and save huge chunks of cash.
- Ditch the banks
Avoid banks as far as your payment processing is concerned. Several banks provide merchant and payment processing services, but their offers are not the best and may not help you save money as your merchant services provider.
The best thing to do is identify your own merchant services provider. And that’s not hard. You just need to know where to look and find the best by shopping around. A simple search on the internet will land you some of the industry’s top processors.
Some of these processors offer additional or specialized services that other industry players do not have, definitely not the banks. EMB for instance allows to open a Debt Collection merchant account to facilitate the collection of debts from customers.
- Opt for an all-in-one provider
If you haven’t noticed, some merchants are forced to process payments by getting different services from different providers, when all these are supposed to be completed by the same provider. For instance, some merchants end up running a merchant account with one provider but a payment gateway from yet another provider.
That kind of arrangement can be particularly costly, not to mention how inconveniencing it can get. Avoid that route. Rather, identify and work with a provider that will pool all your payment processing solutions together.
Working with a single source means that you do not have to bargain with multiple payment service providers.
- Start small and build from there
Every business has growth aspirations. But it’s always wise to start with smaller volumes and scale with time. Your market naturally becomes bigger with time. Starting modestly means less losses associated with the limited market share characteristic of a new business.
This way you are likely to get better rates. Your processor should give you a discount for starting small. If they don’t, just go ahead and ask for the discount. Then be sure to scale to larger volumes as needed.