When dealing with online transactions, you more often will face high costs for transaction fees. The good news, however, is that there are several ways to counter this. We asked the experts to advise us on how we can reduce transaction fees when paying online.
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When your company has a significant risk of credit card fraud, you'll have to pay more for payment processing. Finding solutions to lessen this risk factor is the best way to go. You may, for example, accept more payments in person.
You can ask your consumers to input their CVV or zip code if you wish to allow more virtual payment processing. This will make it easy for the processor to validate the transaction. You'll have a decreased risk of dealing with chargebacks as a result.
Edward Mellett, Founder of Wikijob.uk
There are several ways to reduce transaction fees when paying online. One way is to collect all payments from a single merchant and pay them at the same time. This will greatly reduce the transaction fee as you'll only have to pay a single transaction fee for multiple transactions.
Another way is to ask for the QR code of the merchant from the same bank that you are going to use for the online payment. Most banks will not charge any transaction fee if you are going to use a QR code of an account from the same bank.
This is because the online transaction encourages transactions between accounts within the same bank. Hence, they have waived the transaction fees.
Scott Hasting, experienced financial analyst, CFA & Co-Founder BetWorthy LLC
Another way to reduce the dangers of processing credit card payments is to employ a third-party payment processor. You can make sure the customer is the rightful owner of the credit card by using an address verification service (AVS). The billing address registered with the card issuer will be verified by the AVS. If the information is wrong, the transaction will be rejected.
Rameez Usmani, Tech and Security Expert at Code Signing Store
Making time to study your statement regularly is one of the simplest strategies to lower monthly fees. Regrettably, many processors progressively raise their costs over time, particularly at the end of the year.
Pricing adjustments are always noted on your account, but business owners frequently overlook them. You'll be able to negotiate terms with your existing processor or locate a payment provider that is more suited to your specific business needs if you notice these changes early.
Lauren Cook-McKay, Director of Marketing & Content of Divorce Answers
Because ACH payments, or electronic bank-to-bank transfers, are faster and more dependable than physical checks, all shops should consider accepting them. Additionally, unlike debit and credit cards, they do not have interchange fees, making them far less expensive for businesses to accept.
Chris Nddie, Co-Owner & Marketing Director ClothingRIC
Transaction fees for shopping online can significantly increase your price. What most people do not know is those transaction fees are actually three individual fees:
There are numerous ways to minimize these fees.
Using the most common cards, including Visa and Mastercard, helps because card processors are more set to use these companies as the creditors.
ACH processing: People could use ACH methods to exchange money. These payments may take longer than just swiping, but they are secure and require fewer fees, thanks to that added security.
Cancellation fees cost money. Businesses should try to avoid cancellations as much as possible. In fact, some should eliminate cancellations altogether.
Since most debit card transactions do not need security payments, transaction fees with debit cards are almost negligible.
With the rise of processing fees, many companies have started searching for ways to provide secure payment for less. Some can cost as low as $35 a month compared to the 3% for many transaction fees.
Darren Nix, founder of Steadily Landlord Insurance
One of the best ways to reduce transaction fees is to avoid companies that charge unnecessary fees for online payment transactions. For this, a person should read the fine print of the contract provided by the payment processing service so that you may not be surprised when a transaction fee is deducted from your account.
Another way to avoid transaction fees is to choose a virtual payment processing provider that does not charge any hidden fees for online transactions. So, it is always wise to do your due diligence and select an affordable virtual payment provider that does not charge hidden or unnecessary charges.
Marilyn Gaskell, Founder of TruePeopleSearch
Paul Dent graduated with a degree in Media, Journalism, and Publishing from Oxford Brookes University. His main goal is to help businesses make informed business decisions through his writings.
