Credit card processing fees are pain points for many business owners, especially those with a high-risk merchant account. While merchant account fees are necessary parts of the arrangements, these fees shouldn’t put a severe strain on your monthly budget or cut too deeply into your sales. Did you know you have the power to negotiate lower prices by demonstrating that your risk is lower than what your credit card processor believes? Business owners who want to lower their rates have several options that could help them save money.
Explain Shipping Timelines
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To avoid having customers become nervous about their purchases being shipped from your company, make delivery times clear when outlining your shipping options. If customers think their packages aren’t in transit, they may call their credit card companies and ask for refunds, resulting in chargebacks.
By helping your customers adopt realistic expectations for receipt of their orders, you reduce chargebacks. With fewer chargebacks, you can make a credible case to your credit card processor for lower fees.
Implement an Easy Return Policy
By enabling customers to return their purchases quickly and receive refunds, you reduce the chances they’ll request chargebacks from their credit card companies. Customers tend to opt for chargebacks when the businesses they’ve used for services are difficult or unresponsive. Your return policies should clearly state how long customers must wait to receive refunds.
With a fast, pain-free return and refund policy, you can reduce chargebacks. When you have fewer chargebacks, you have the leverage to ask for lower fees on your credit card processing account, especially if you have a high-risk merchant account. To set up your return policy, be sure to follow applicable laws in your state and rules established by the credit card companies. Read more about High Risk merchant accounts US.
Create a Track Record
Demonstrate that you aren’t exceeding your estimated monthly transactions and chargebacks. Once you have a track record, you can ask your credit card processor to lower or waive certain fees. By proving your business’s stability and predictability, you show that your company’s risk is lower than what the processor initially anticipated. Lower costs should come with lower risks.
Use a Credit Card Processing Consultant
With the help of an industry expert, you may be able to lower the fees you pay. Usually, the expert will share the savings with the merchant. The best consultants charge businesses nothing if they can’t negotiate lower fees.
Require Customers to Enter More Information
Many companies with a high-risk merchant account sell products and services over the internet or phone. As a result, these businesses can’t process credit cards in person. However, they can require customers to provide security information when using their credit cards. By requiring customers to give their billing ZIP codes, the three digits on the back of the cards, or a telephone number, you give fraudsters more obstacles to face. Through reducing fraud, you lower your risk and strengthen your case for lower fees.
By reducing fraud and keeping chargebacks below 3 percent of your revenue stream each month, you may convince your credit card processor to lower your merchant account fees.
