How to Get Lower Credit Card Processing Fees For Your Business

How To Get Lower Credit Card Processing Fees

Lower Credit Card Processing Fees

Do you want lower credit card processing fees? If so, you’re not alone. There are thousands of business owners across the world searching for the same thing.

It’s something that drives me crazy about this business. There’s no reason that business owners should be treated this way.

Most credit card processing companies see business owners as a money piñata. That’s just bad business.

Reps go out to try and get the absolute most out of business owners who might not know the credit card processing industry.

It’s a game stacked against the business owner, and we’re here to turn the tables for you.

Lower Credit Card Processing Fees In Just a Few Steps

Let’s start off with the first thing you need to know if you want lower credit card processing fees. To get lower credit card processing fees, you need to find a new merchant processor.

If the current processor you use to accept credit cards is charging you too much, why in the world you would want to stay with them?

They set you up with the fees you have, and never told you the tricks to lower credit fees they could have given you. If your business accepts credit, make sure you’re working with a processor you can trust.

Many businesses will use a retail POS (point of sale) system to complete their transactions. A POS system is a payment processing system that accepts payment through a payment gateway.

POS systems differ from credit card terminals by including more than just credit card processing, like a drawer for cash management and inventory management.

Payment processing companies that use POS systems tend to be the preferred companies.

When a credit card transaction takes place on a POS system, the POS software will run the card through the card network and confirm the sale.

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Learn more about how Zero Fee Processing has actually put money back in the pockets of a real-life business owner.


In order to have lower credit card processing fees, look for a credit card processing company that has the following qualities and offerings.

1. Cost-plus pricing model

This is by far the most honest and transparent pricing model. The Cost-plus model gives you the exact interchange rate. (The rate charged by the credit card companies.)

The interchange plus pricing model tries to calculate what the total fee of the interchange plus the markup fee will be. A lower interchange rate would then save you, the customer, more money. 

If Visa Mastercard or American Express charges 1% and $.22 to run a particular card, that’s how much you pay for the transaction made on the customers credit card. You also pay the plus (+) part of the overall cost-plus pricing model which pays the processing company their fee.

The card issuing bank and company get the profit from that transaction, no matter the type of transactions.

The merchant account that accepts credit card payments will then have to pay an interchange fee to the bank of the customer.

The fee to the processor is nominal and ends up being cents per transaction. This model gives you transparent pricing and you know where every penny is going helping you to receive the lowest credit card processing rates and fees.

2. Dedicated Customer Service Representative

When you need customer service help, you want someone who knows your business. Lower credit card processing fees won’t matter if the new company isn’t there when you need them.

What would happen if you had a chargeback on your account? Who would you call? Would you get a call center overseas or the person you spoke to who signed you up?

This might not seem like a topic worthy of the #2 spot, right? We hear that it’s the number one thing most business owners regret not checking before they sign up.

If you want the lowest fee credit card processing cost, don’t focus just on fees. You want to find a credit card processing company that gives you all the bells and whistles too.

3. Zero Fee Processing Pricing Model

Is there such a thing as a processing agreement where the business doesn’t pay fees? You bet there is, and you should go find it.

Most business types and their owners know about traditional processing models. What many don’t know about is a model that has the customers pay your fees for you. It’s called Zero Fee Processing, and you can get it.

What would it be like to add back in all the credit card processing fees like pertransaction fees that your business pays each month? Would that make a difference to your bottom line? I bet it would, or you wouldn’t be reading this article right now.

If you want to add that 3-4% back to your bottom line, it takes just an email to get started.

4. Month-to-Month Contracts

If you’re looking for a Cost-plus or a zero free processing company, watch for the contract. If they want you to sign a 3-year contract, it’s time to get up and walk out. They’re not for you.

The companies with low average credit card processing fees use month-to-month contracts.How can they do this? It’s because they know that they won’t lose you to another processing company.

Their rates are crazy low, and it’s not worth the effort for another company to poach your business and your business credit cards.

Month-to-month contracts give you the freedom to not have to worry about increasing monthly minimums. They allow you to get out of your contract if your payment processor or payment service providers are not meeting your expectations.

The great credit card readers and processors are sure of their pricing model and customer service. They know that once you’ve worked with them that you won’t be leaving.

Thus the monthly contracts. If you’re ever unhappy, you can leave at the end of the current processing month. It’s the perfect setup to make sure that they continue to earn your business.

5. Lower Your Fraud Risk

Did you know that the higher number of fraud reports on your processing account affects your rate?

When you ask a credit card processor to look at your business and your business finances, they’re assessing risk.

They want to know the chances that your business is going to process fraudulent transactions.

You can help lower your credit card processing fees by making sure that you swipe all your transactions.

You can also make people enter their zip code as an additional security precaution. Adding these simple security measures will lead to reducing credit card fraud for your company.

Keep your fraudulent transactions to a minimum, and your processing rate will follow suit.

6. Leave a “Tiered” or “Bundled” Pricing Model

If you’re currently processing on a tiered or bundled pricing model, you’re paying too much.

Tiered price plans are complicated and designed to keep the merchant confused. Why would you want to partner with a company that wants you to be confused?

Tiered and bundled pricing plans are ripe with places to hide fees for the processor.

Take out the trash and find yourself a processor that has a free processing or cost-plus option to help reduce credit card processing fees, and virtually remove all hidden fees. Your bottom line will thank you.

Find a company without a high processor markup or increasing processor charges.

7. Read and Calculate your Monthly Statement

You’ve seen your monthly credit card processing statement, right? You know, that envelope you open just scanning to the bottom line each month? Did you know that all you need to know about your current processor is sent to you every 30 days?

You can break down exactly how much monthly fees you are paying for credit card processing. Just take your total amount processed and divide by the transaction fees charged to get your percentage paid.

If the percentage that you get doesn’t match your quote, get angry. If you find that you’re like most businesses and your rates have been hiked, it’s time to change.

You have the ability to check each month to see if your processing company is being transparent.

Most credit card processing companies assume you won’t check your effective rate after 6 months. That’s when they usually hike your rates.

They can do it because there’s a clause in your contract that allows them to.

You’ll never know and they’ll be making off with your hard-earned money and actually keep you from saving money.

Lower Credit Card Processing Fees: The Next Step

Take a second right now and review your most recent statement. I bet you’ll find that you’re easily paying 1-2% more than you think you are.

The quoted flat rate or flat fee was most likely for “qualified” credit and debit cards, and when you process mid and unqualified cards you pay more.

It becomes less like fixed costs when you don’t know what you’re actually supposed to be paying.

We know that beginning a business can be stressful. You have to sort through countless business ideas, apply for business loans, decide whether or not you want to a website to allow your business to also be an online business that will accept online payment and so on.

We want to help ease the process for you at Shift. 

Find a processor that accepts credit cards as payment methods, but with lower fees. Less money spent on fees will allow you to grow your business at a quicker rate. 

Your new merchant service provider, might also be able to help you with a business line of credit. Don’t be fooled though, you want a merchant service provider that knows card processing, not just business or personal loans.

You will have more financial flexibility if you get the right processing partner. Financial help comes in less fees every month, and over time it can easily be hundreds of thousands of dollars.

If you find that you’re being taken advantage of, it’s time to switch. You need to find a company that’s transparent and provides incredible customer service. You need a company exactly like Shift Processing.

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