Three simple tricks to lower your credit card processing rates

This is Dana Barrett with, where we help small merchants get a better deal.  As part of our small business prosperity series, I’m going to discuss 3 tricks to lower your credit card processing rates.

The first trick is to change your pricing plan to interchange plus or pass thru pricing.  Interchange plus is the most transparent and lowest cost plan available.  All the Fortune 500 companies are on interchange plus. 

However, most processors resist putting small business merchants on interchange plus pricing because the profit margins are so slim.   If your processor refuses, switch to one that doesn’t.  

The second trick is to make sure you are taking advantage of the Durbin Amendment.  This federal regulation drastically reduces debit card transaction rates at the wholesale level.    Merchants can save 40% or more in most cases.  However, there is nothing in the Amendment that compels your processor to pass those savings on to you.  It is up to you to make sure you are getting the reduction.  

Finally, have your processing statements analyzed every six months by a merchant services specialist.   Processors are notorious for tacking on fees.  Visa/Mastercard meets twice a year in April and in October to set rates.   Most of the rate hikes happen at these times of the year.   If you are on top of your statements, you can in many cases exempt yourself from those hikes.  

If you need help or more information about any of these topics, please visit our site,   Our processors will be glad to analyze your statements and provide free, no obligation quotes.   Thank you for visiting. 

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