How to pass your credit card processing fee to your customers?
Pass your credit card processing fee to your customers is a better way to save your credit card processing fee for your company, If you are a small merchant or if you have just started your business it is important that you try to avoid as much fees as possible to save money, so that you can invest that money towards enhancing and developing your business. The fees that we’re talking about here is, the fees that payment processing companies charge you every time your customers use their credit card to make purchases at your store.
There is no charge for using a debit card but for using a credit card you will have to pay your processing company a fee of approximately 5% or every transaction. The fees that the credit card payment processing companies charge you is unavoidable, however, there is always a way you can request your payment processor to reduce down that fee.
One other way to save money is by pass your Credit Card processing fee to your customers. You can surcharge your customers or ask them to avoid using credit cards. The following points will discuss it in a more elaborate manner:
Best way to pass your credit card processing fee to your customer
The more credit cards are used for payments, the more the fee you will end up paying to your payment processing company. If you have a lot of credit card customers at your Store, and you are earning minimum amount of revenue while at the same time you’re paying your credit card processor a fee, it is high time you take some actions. You are legally allowed to surcharge your customers.
This means you will be charging them a convenience fee for your services. All you have to do is every time your customer wishes to use their credit card for processing a payment, add a flat rate of fees on their bills for using the credit card.
This is also known as convenience fee, and you will mostly see this happening online, especially when you book movie tickets or order food. If you do not want to surcharge your customers on every transaction you can only surcharge them on transactions which cost you a higher fee.
Encourage cash or debit cards
When your customer is at the point of sale ready to pay for the purchase, ask them to pay in cash or use the debit card instead of their credit card. In case they do not have the debit card or cash, you can ask them to check if they have the credit card that charges you less fees or interest. Electronic payments or bank transfers are other options you can choose.
The total fee that is charged to you by payment processing companies for each transaction consist of several fees put together to look like one single fee. This fee includes statement fees, batch fees, PCI compliance fees, etc. You can request your customers to pay for any one of these extra fees charged to you because of them choosing to use their credit card over their debit card or cash.
One other way is, by asking your customers to allow you to deduct the extra fee that you have to pay because of them using their credit card for the purchase.