If your business accepts credit card payments, you have to understand that there will always be a processing fee to pay for each transaction. Generally, merchant account companies charge businesses up to 5% of their overall credit card sales.

There’s no way for you to avoid card processing fees because they are inevitable. You can, however, reduce your card processing fees, which will help save your business money. There are several ways you can do this:

Choose The Right Processor For Your Business

If your business processes less than $3,000 of credit card transactions per month, you should consider switching to a flat-rate processor that won’t charge you for any additional processing fees. Even though flat-rate processors have higher upfront costs than standard payment processors, their overall and long-term costs will be much lower since you no longer have to pay for monthly and annual processing fees. But if your business handles more than $3,000 of credit card transactions per month, you can save a lot of money on card processing fees when you choose a standard payment processor.

Here’s the difference between a flat-rate processor and a standard payment processor.

  • Flat-Rate Processors: These are upfront with their pricing, rates, fees, and terms. This makes it easy for you to compare with other providers. In addition to this, flat-rate processors don’t require you to sign up for a long-term contract, and you can cancel your account with them whenever you want without penalty.
  • Standard Payment Processors: These are less transparent, especially when it comes to their pricing, rates, and terms. You’ll have to call these providers to get all the important information. Also, their contracts are long-term, and you may have to wait for a certain amount of time before you are allowed to cancel the contract.

Shop Around When Choosing A Credit Card Processing Company

Credit card processing companies are competing with one another to lure in clients. As a result, one company might offer a lower rate to attract clients, while others might charge you for more even though they have the exact same services. Either way, it’s worth shopping around to find the best deal for your business to reduce your card processing fees. Comparison sites like CardSwitcher can help you determine which type of processor best suits your business.

Before you sign a contract, be sure to understand their fee structure first, especially when it comes to how it works. Talk to the credit card processing company first and ask them to explain to you the fees they’re going to charge. You can also ask them to disclose what other options you might have should you decide to cancel the contract.

Always Swipe The Cards

Credit card transactions that require you to enter your customer’s card information manually are more expensive than simply swiping the card, especially when it comes fees per transaction. This is because manual credit card transactions are more vulnerable to fraud. Because the risks of fraud are higher, credit card processing companies have no choice but to charge you more for protecting each your manually-entered transactions.

To help prevent your business from spending more on card processing fees, you should always swipe your customer’s credit card all the time and avoid manual transactions. This involves training your cashiers to swipe the customer’s credit cards every time they pay. Also, train your cashiers to be suspicious about fraud. Tell them to ask for a valid ID or any other proof of identification to see if the customer’s name matches with what’s indicated on the card.

Impose A Minimum Amount For Credit Card Transactions

Just because your business accepts credit card payments doesn’t mean that you are going to accept credit cards only. This is especially true for purchases that are under $5. If a customer pays for their purchase that is less than $5, perhaps you can ask them to pay you in cash instead. Small transactions, especially those under $5, usually have lower profit margins and it’s not worth conducting a sale through a credit card, especially if you factor in the card processing fees.

Impose a minimum amount for credit card transactions by putting up a sign that says you only accept credit card payment for purchases that are $10 or more. This way, you’ll be able to save your business from spending money on card processing fees.


By making some smart decisions and actions, you can save a ton of money from card processing fees. It’s true that credit card payments can boost your sales, but don’t rely on them so much, especially if the transaction is less than $5 because, in the long run, your business is actually losing money instead of earning more.

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