Essential Tips for Reducing Credit Card Processing Fees
Dentists have very little choice but to accept credit cards as a payment option. Doing so helps millions of patients pay for treatment, which would otherwise be impossible in many cases if cash was the only option for payment. As helpful as accepting credit cards can be for those who are looking to grow their dental practices, however, the associated fees are a huge hurdle that can cut into profits with time. While avoiding credit card fees entirely can be challenging to say the very least, there are ways to reduce them so that they don’t have such a negative impact on your profits.
Looking to reduce credit card processing fees as you grow your business? Here’s how to get started.
Negotiate with Processors
Your credit card processor is a vendor just like any other. As such, you owe it to yourself to put at least some effort into the negotiation process in order to ensure you’re getting the best deals possible, which is something many practice managers and bookkeepers don’t realize is possible with credit card processing companies. In this case, it helps a great deal to have some leverage over the processing company, which you can gain by upping your sales volume. The more potential business you toss their way, the more likely it is that they’ll be willing to reduce your processing fees so that everyone wins.
Swipe Whenever Possible
Anyone who has ever tried to make a credit card transaction when a network is down knows that there are other methods of recording the purchase aside from swiping the card itself. Due to technological advancements in security protocols, however, swiping is considered to be far less risky than entering financial information manually. The more you can swipe your patients’ cards rather than simply taking down their information (such as making payments over the phone, for example), the less risky a merchant you’ll be viewed as by your credit card processing company—lowered risk often means reduced processing fees.
Use Apps to Reduce Terminal Costs
Terminal costs—that is, costs associated with the hardware involved in processing card card payments—often go overlooked when discussing how to reduce fees. That said, they can add up to be quite high when compared with some of the more reasonable and rapidly evolving payment technologies available today, many of which utilize apps that can be controlled with a smartphone or tablet. Consider these options before purchasing expensive hardware, as they’re both more efficient and less expensive than methods from the past.
Credit card fees can add up, but if you work to control them, they won’t put your accounts receivables in the red. Remember—you can always go elsewhere if you feel a vendor relationship isn’t working in your favor.