The most common excuse I hear for not accepting credit cards is “the fees are too expensive”. While it’s true there are fees associated with processing credit card payments, there are also ways to keep these fees to a minimum.

Utility program rates

In a retail environment, disputed charges and returns are two factors that impact the cost of processing credit card transactions.

Utilities don’t deal with returns and, by the nature of your business, have fewer disputed charges than retail merchants. For this reason, both MasterCard and Visa offer utility programs that provide significant savings over traditional retail merchant fees.

Convenience fees

Traditionally, these utility programs have required that you not charge a convenience fee to participate.

I’ve heard the new checkout fee rules have relaxed this requirement, but recommend you contact your merchant processor if you have questions.

Contact your merchant processor

Are you taking advantage of your merchant processor’s utility program rates? If you’re not sure, give them a call to find out.

Merchant processors want your business and it’s in their best interest to offer you the most competitive rates they can. If you feel like you’re paying too much in credit card fees, give your merchant processor a call and see if you can negotiate a better deal.