Accepting online payments and multiple forms of payment is the norm for most small businesses today. The few businesses that don’t accept multiple forms of payment are no doubt missing out on additional sales and revenue.
We already know that people want to pay for goods and services that offer convenience and value, but it’s also convenient to make the payment process smooth and efficient. When you offer convenient payment methods, it does come with a price…literally.
Small business owners usually pay a fee when accepting credit card payments. While sites like PayPal and Stripe can also help you get paid quickly online, they charge a fee per transaction as well. To keep your business going and preserve your cash flow, the best thing you can do is balance out payment processing fees.
Ways to Manage or Lower Payment Processing Fees
Here are 4 easy ways to do it.
1. Choose a Low-Fee Payment Processing System
This seems like an obvious solution, but you probably wouldn’t believe how many people are overpaying for payment processing fees. According to Investopedia, payment fees typically cost between 0.05% – 5% of the transaction amount, plus $0.20 to $0.30 per transaction.
When choosing your payment processing software, it’s important to compare a variety of features but really focus on the transaction fees. They may seem small but they add up if you’re going to be accepting multiple payments throughout the month. You can save literally hundreds (or more) in fees per month by choosing as low-fee payment processing system.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale