How do I reduce credit card processing fees?
The biggest lever is your pricing model. A Cash Discount or Dual Pricing program can eliminate almost all of your processing fees by posting a cash price and a card price at checkout. Interchange-plus pricing and the right hardware also lower costs versus flat-rate processors.
Most businesses overpay on card processing for two reasons: a flat-rate pricing model (like many big-name processors use) and fees they never negotiated. You can usually cut costs in three ways.
1. Change your pricing model. With a Cash Discount or Dual Pricing program, the cost of card acceptance is offset at the register — customers see a cash price and a card price, and you keep nearly 100% of every sale. This is the single biggest lever for most merchants.
2. Move to transparent pricing. If dual pricing isn't a fit, interchange-plus or a wholesale rate program replaces padded flat rates with the true cost of interchange plus a small, visible markup.
3. Match hardware to how you sell. The right terminal or POS reduces downgrades and keeps you on the lowest qualified rates. Velocity reviews a recent statement and shows you exactly what you'd save — at no cost.
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