Credit card processing fees have long been the bane of many small businesses. Small at first, but large in volume, these fees can slice thousands of dollars from the bottom line over time, as big credit card companies require the payments or otherwise block companies from using their services at all. However, recent moves in the market point toward potential relief, and there are tricks that company owners can use to slow the monetary bleeding.
Fees may change soon
According to Fox Business, a recent antitrust lawsuit against two major credit card companies may soon go forward with potential positive effects for small businesses. Thousands of retailers across the United States are in the process of suing MasterCard and Visa over fixing the fees in question, which led to millions of collective dollars lost.
Though the case has already seen one settlement to the tune of $5.7 billion levied at the credit card companies, more are fighting to push it further. The long-term effects of this decision may lead to a future of brighter credit card payments.
Reducing fees now
Some businesses, however, cannot wait. There's no question that credit card fees can add up quickly. Business News Daily reported that there are some new processes that smaller companies can take to stem the losses they experience from these expenses.
One such way to do so is actually to accept as many cards as possible, the news source noted. The higher security risk a merchant poses, the more risk of fees it runs. In turn, swiping as many cards as possible and successfully completing transactions, as well as putting additional security features in place such as zip code requests, can lower the risk a business poses, and as a result also lower its fees in turn.
Working with a larger bank instead of a credit card company or small financial institution can help these costs as well, because smaller banks are essentially middlemen for larger companies. By working with larger banks, steps are removed from the equation, which has the extra benefit of cutting down on things like extra processing fees from a business to a bank, and from that bank to a credit card provider.
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