Today, most consumers prefer to go cashless, whether online or in physical stores. Using a credit card or digital wallet is definitely more convenient for customers than having to lug around wads of cash when they go shopping or pay the bills. That’s why as a merchant, you must keep up with the times and partner with a card processing supplier for your business.
If you’re an owner of a small or medium enterprise, you may be concerned about the processing fees that these providers offer. After all, you still want to earn profit from each item you sell, but some suppliers charge a hefty amount per transaction. This dilemma can be easily solved by researching the market and finding the best dealer for your needs.
If you already have a card processing supplier, here are some benefits on why you should make the switch:
1. Lower Processing Fees
The most significant advantage of switching card processing suppliers is that you are given the power to negotiate the plan you want and choose the provider that offers lower processing fees. This way, you’ll get a higher profit margin for each sale.
It can be challenging to understand all the financial jargon in your credit card processing contract. However, you must study it and check if you’re being charged with hidden fees, which can take a massive cut on your revenue.
These are the charges that are taken by card processors:
- Interchange – The interchange pertains to the supplier taking a percent of the transaction amount as well as a markup fee.
- Assessment Fee – The assessment fee is charged for the service of checking whether the customer’s credit or debit card has enough funds for the sale.
- Transaction Fee – Typically, transaction fees refer to a dollar amount charged by your supplier for every transaction processed, whether it’s a sale, decline, or return.
Meanwhile, here are the common types of processing fee packages that you should know about:
- Flat-Rate – This type of pricing model means that you have to pay a fixed fee to the processor for each transaction you place in their terminal. It depends if they’ll take a percentage of the total sale amount or if they have a specific rate.
- Interchange – With the interchange fee type, you will be charged with a fixed markup along with the payment for processing and assessing each transaction.
- Tiered – In this processing fee model, each sale is categorised into qualified, mid-qualified, or non-qualified. Qualified transactions are those that are swiped into a physical terminal using a regular credit card while mid-qualified ones entail keying in the customer’s card number instead of swiping. Non-qualified rates apply to payments that involve the use of rewards programs or corporate card transactions.
Finding the right supplier for your business has become more accessible with companies like Card Switcher UK. The website allows you to choose from the best packages and pricing structures for your business with just a few details about your company.
2. Flexible Pricing Options
Switching card processors can also open up new pricing models for your enterprise. Since the market is always evolving and there’s more competition nowadays, providers have to work with entrepreneurs to ensure that business owners still get a high profit margin while catering to the demands of their customers.
You can consult with potential credit card processors about your budget. They can recommend the best packages for your needs and preferences without compromising the quality of their service.
3. Customisable Plans
Starting a business at home, such as setting up an online store, has varied challenges for different industries. Plus, your income and the number of transactions you’ve processed while your company was still in its early stages may have changed a lot after a few months or years. If your current card processing plan is no longer as efficient as before, it may be time to make the switch. Look for a provider that can give your company the features that it needs today and for its growth.
4. More Updated Equipment
Another significant benefit of switching credit card processors is that you get new and updated equipment without having to pay extra for an upgrade. Technology evolves rapidly, and you should keep up to cater to the needs of your customers.
Switching card processors can give you more control over the pricing structure and features that you want for your business. You also get to request for a customised plan that delivers optimal service to you and your customers. Moreover, you can enjoy more updated equipment without having to pay an additional amount for the upgrade.