subject: Keeping Credit Card Fees Down [print this page] 7 Tips that will help keep your credit card processing fees down
1. (Keyed Transactions) If your business keys transaction you want to make sure your terminal prompts for a zip code. Full AVS (address verification) is not needed, but Visa and MasterCard require at least the zip code.
2. (Pre Authorization) Visa and MasterCard require that if you pre-authorize a credit card you settle the transaction within 1 day for retail business, 2 days for card not present businesses.
3. (Pre Authorization) When you Pre-auth a card the settled amount has to be no more than 20% more. Example, if you pre-authorize $1,000 the settled amount has to be no more than $, 1,200.
4. (Batching your terminal) Make sure you batch or settle your terminal each day. Visa and MasterCard both require transactions settle or close within 1 day.
5. (Manual Imprinters) It"s a great idea to make sure have one of these and take a manual imprint when you have to key a transaction. If you ever have a charge-back, the first thing Visa or MasterCard will ask for is proof of the sale.
6. (Pin Pads) If you process high dollar transactions you may want to add a pin pad. You pay no rate for debit, only a flat fee per item.
7. (Commercial & Business Card) Visa and MasterCard have special programs designed for businesses processing commercial, business, purchasing and government cards that allow you to save up to 1% on every one of these transactions. You need to make sure your processor is a certified B2B processor or you will not get these special rates.
Ensuring your processor trains your employees and staff on requirements for particular cards or transactions are just as important as providing a low rate. Not doing any one the tips above can cost your company an additional 1% and more on your bottom line.
