How to reduce your credit card fees

Credit cards can be a smart, easy, and effective tool for small business owners to attract and retain customers and grow their business. But processing credit card transactions can often entail sneaky fees that put an unwelcome dent in your finances. In this blog, we share a simple way to reduce credit card processing fees so you can maximize every dollar for your business.

The quickest and easiest way to reduce your credit card fees is to reach out to your credit card processing company, speak to your account manager, and ask them to lower your fees. Yes, really, it’s that simple! Many people don’t realize that most credit card fees are negotiable, so a simple conversation with your processor will often do the trick. 

If you’ve been a customer for a while and you can demonstrate that you have large transaction volumes (i.e., consistent and sizeable credit card transactions associated with your business), you’ll have better luck negotiating a reduction in credit card fees.

Why? The more transactions that are associated with your business, the more value you provide to the credit card processing company. In other words, your transaction volume directly affects their profits, so if you can demonstrate that you make them a consistent amount of money, they may in turn reduce your fees or provide specific advice on how to minimize your fees. You get bonus points if the transactions you do have are high amounts.

Below is a simple script you can use via email or over the phone:

“I’ve been a customer for [X amount of time] now, and I’m wondering if you can review our processing rates to better fit our business model. I process [X] amount of dollars every month or year, and given my consistent business rates, I’m hoping to secure a lower processing fee.”

People often ask us: Why should I take the time to do this if I don’t think my credit card processing fees are high? Or: Why bother asking? They’re just going to say no.

To which we say: anytime you have an opportunity to save money for your business, you should take it. If a simple email or phone call can save you money—especially over the long run—it’s worth taking the time to do it. These seemingly small decisions and changes can have an outsized impact on your business by freeing up money that can be spent elsewhere.

Looking for ways to cut costs, maximize your spending, and improve the health of your business? Schedule a consultation with our team.