Every business has to manage payment processing and operational costs. You simply cannot have one without the other. However, because the businesses that provide these services are also trying to make money, these costs can get expensive quickly. In many cases, they are much higher than they really need to be.
Here are a few ideas on how your business can reduce payment processing and operational costs:
Payment Processing Fees
The first place to start in minimizing payment processing fees is negotiating. Most transactions are credit card based nowadays, not cash-based. What does that mean for your business? Credit card payments typically require third-party verifiers that charge fees for their services. This means your business has the opportunity to negotiate with credit card processors for lower rates.
“Processors, just like any other business, can negotiate with their suppliers off of the volume of processing their clients compete. The more you give them, the more negotiating power they have upstream to lower their overhead in different areas. IN turn, they can lower your rates if that is worthwhile to them,” explains Executive Director of Total Apps, Rey Pasinli.
The key to reducing operating costs is to embrace automation. Advancing technology has made it possible for business owners to free up valuable time and energy by automating many outdated processes. For example, many businesses choose to automate their invoicing processing. Others automate sales/CRM, ticketing (for businesses the specialize events), assigning tasks, etc.
Automation is also very effective when it comes to managing leads. Noting and nurturing leads is a very time-consuming process. Utilizing technology allows businesses to effortlessly pinpoint patterns and connect with potential customers. Rather than getting tied up sifting through seemingly endless lists, employees can move on to other tasks.
High Risk Merchant Account
To reduce both payment processing fees and operational costs, many business owners broaden their search to include alternative providers, like eMerchantBroker.com. With an alternative provider, businesses can find solutions that are hard – or impossible – to find elsewhere. Business considered “high risk”, for example, struggle to find payment processing in the first place (not to mention options they can afford).
What makes a business risky? On a daily basis, banks turn down online merchants that have excellent credit scores and solid revenue streams. The fact that it is not a brick-and-mortar business or that it does not have enough assets makes traditional lenders nervous. Businesses that have poor or no credit, limited time in business (startup), risk industry or business type or bankruptcy history have even more obstacles in their way.
A high-risk merchant account from a provider like EMB solves these merchant’s payment processing dilemma. Merchants not only secure needed payment processing solutions, but also gains a host of other (affordable) financial and payment solutions their business needs to grow and prosper.
With EMB, merchants are offered:
- ACH Processing
- Business Funding
- Chargeback Dispute Resolution and Prevention Programs
- Instant Check Processing Solutions
- Merchant Cash Advances
- Mail Order/Telephone Order (MOTO) Processing
- Online Payment Gateways
- Point-of-Sale (POS) Solutions
How to Get a High-Risk Merchant Account
Applying for a high-risk merchant account is a fast and hassle-free process. Once you have completed the application procedure, your processor will send it to the underwriting team for review. You can have your account and payment processing setup in as little as 24 hours. The typical requirements are simple and straightforward:
- A valid ID (e.g. driver’s license)
- Printed voided check or bank letter
- Most recent bank statements (for the last 3 months)
- Processing statements (for the last few months, only if applicable)
- A social security number (SSN) or employer identification number (EIN)
- Your chargebacks must be below 2%
Do you want to reduce your payment processing and operational costs? Would you like to learn more about a high-risk merchant account? Contact the team of experts at EMB to learn more and/or start the application process.