• stephen walsh

8 Steps to lower credit card processing fees for small businesses

As a small business owner myself it is vital to keep my over head down and that means reviewing my service related bills to make sure i'm not getting over charged on anything and everything is inline to what we agreed on. If accepting credit cards is part of your business model you really need to be reivewiewing your monthly statement on the regular because we're noticing processing companies sneaking in hefty services fees. Here are 10 tips to keep your fees low.

1.Follow the rule

Make sure you your PCI compliance is up to date and that you're actually compliant. This is an area we see many small businesses struggling because they don't have the time to be taking a questionnaire. At Bespoke we know its annoying and will hold your hand over the phone to make sure you get compliant. This way you wont have to worry about it for a year plus you wont be charged a non-compliant fee. Some processors are charging up to $300 for non compliance.

2.Try not to manfully key in CC info

If you could avoid keying in credit card info and can swipe the transaction, make sure that you always do. When ever you key in credit card info, you risk human error and incur higher fees. Swipe first always.


Inserting a chip card is even better than swiping because its more secure and thus generates a lower fee on each payment you collect.

4.Watch hidden fees

Many processors charge additional fees many you probably aren't aware of. They normally will alert you at the very bottom of your monthly statement in writing explaining that if you don't reply by certain date they will automatically opt you in for that service which more than likely you wont need.

5. Interchange pricing structure

Flat rates, tiered pricing and blended rates are all hype. The best possible pricing structure for any business to be on for processing credit cards is interchange pass through pricing. Its the most transparent pricing. Make sure your mark up isn't extremely high.

6.Fraud alert

Having a processor that that will help you by implementing tracking tools on collecting data and pattern recognition will help identify fraud. Make sure you have a return police so your customers know that you have a right to decline a return. By reducing fraud and chargebacks, it will keep your effective rate down.

7.Batch Out ASAP

The longer transactions sit with out settling the higher risk you generate against the business which means the higher rates and fees you will pay. Set your batches to auto settle to ensure a daily settlement.


Try to encourage that your customers pay with debit. If not add a convenience fee for accepting credit cards. This can eliminate your fees complelty.

Processing fees depending on your industry type i.e. Low-Risk or High-Risk can fluctuate anywhere from 1.5% -6.99% so anything that you can do to keep your rates and fees from going up will keep your fees inline.

If you have any questions or would like for us to review a recent statement from your current processor please contact us and we will be gladly t help you.

Recent Posts

See All