One of the ways to provide the best shopping experience for customers is to optimize the checkout process. More and more customers prefer to pay by credit card and other online payment methods because it is more convenient and beneficial than cash. This, however, exposes the business to a fee known as a payment processing fee. The cost of this may be small in the transaction, but in total, it affects the store’s revenue quite significantly. In this article, we would like to outline strategies to reduce this payment pricing cost.
Strategies to Lower Payment Processing Costs
Choosing the right pricing model
To lower payment pricing, business users first need to choose the right service price package for their business needs. Usually, vendors will offer three options of pricing plans and it is not possible to judge which is the best as it depends on the business growth rate, transaction type, and volume of the business to choose the suitable model pricing.
There is a fixed cost for payment processing that any business has to pay. However, this cost goes with the pricing plan, and each plan has its benefits and drawbacks for the business.
Fee negotiation
Negotiating with suppliers to reduce costs for payment processing is often inappropriate because suppliers already have prices and apply to many customers, so it is pre-programmed. However, some costs for payment pricing are still negotiable if the retailer knows how to propose and negotiate with the supplier. So the business can propose sales and ask the supplier to support this.
Reducing the risk of fraud
When fraud occurs, the seller inevitably incurs compensation or damages, and if this is left unchecked, the cost of payment processing will increase greatly. Therefore, businesses need to reduce the risk of credit card fraud through some methods such as demonstrating a clear return policy, complying with PCI (Payment Card Industry) standards, recommending swiping to the credit card with the keyed transactions, entering secure information to authenticate payments and protect cardholders, and requiring signatures for delivered orders. In particular, users should save receipts and transaction history, always keep up to date with the latest technology, and equip the appropriate POS terminal (aka point of sale terminal). This will help reduce costs as well as reduce the risk of retail fraud, reducing stress for businesses.
Payment processing from your POS provider
A good way to limit payment pricing is to process it through the enterprise’s POS system. To do this, businesses need to choose a software provider with full and versatile POS support and features. From there, payment processing will be easy, eliminating additional costs like fraud prevention fees. In particular, when combined directly with enterprise systems, retailers will be able to seamlessly integrate and, if eligible for processing discounts, costs will be significantly lower.
ConnectPOS is a leading cloud point-of-sale system that minimizes payment pricing. This system allows merchants to accept multiple payment methods such as cash, credit, and debit cards, e-wallets, or payments through third-party payment gateways. In particular, when using this software, retailers will not incur any fees when they use payment processing or change other payments.
Conclusion
Payment pricing is not a small expense for any business. To reduce this cost to increase store revenue, retailers can negotiate, increase security, or use a combination of other strategies to reduce credit card processing costs. If you are looking for a good corporate governance system and support for economical payment processing, feel free tocontact us
►►► See our products: Magento POS, BigCommerce POS, Shopify POS, Woocommerce POS, NetSuite POS, Commercetools POS, Customize POS, Customer Experience Solution and Next-Gen POS
