Tip #1: Don’t Lease a Credit Card Terminal

Although leasing a credit card processing terminal may seem like a smart cost cutting move for a new business that may already be cash strapped, leasing a credit card terminal is really more expensive in the long run.

Most credit card processing terminals cost between $200 for a low end to $400 for a mid level terminal. Take the time to calculate the costs of your lease agreement compared to the cost of the terminals mentioned above. I think you will find that you pay much more for a terminal that is leased than if you were to buy the credit card processing terminal outright.

Tip #2: Do Not Use Your Bank

Very few banks offer their own merchant services. Typically, they partner with a third party processor who marks up merchant rates and fees so they can profit from the business relationship. Avoid banks that do not offer their own merchant services, in essence they are middle men that will end up charging you more for processing merchant transactions and offer poorer customer service than dealing directly with a merchant services provider.

Tip #3: Use Debit Transactions

Typically, debit transactions are less expensive for retail businesses than credit transactions. While the cost of setting up the processing for debit transactions may cost more because you will be required to get a pin pad or credit card processing terminal with pinpad capabilities, your business will save in long term because debit transactions are processed at a flat fee.

Tip #4: Security

Make sure the Point of Sale software you select is PA-DSS compliant and that your merchant services provider is PCI compliant. The Payment Application Data Security Standards endorsed by the five major payment card brands to ensure that payment applications don’t store sensitive card data and don’t have flaws that draw hacker attacks. Many retailers would be surprised to learn that credit card processing companies pass along hefty fines for data security breaches that compromise customer credit card information.

Tip #5: Shop the Competition

For those of you who already have a merchant account, if you are not locked into a long term contract, use our FREE credit card processing rate comparison service to determine if you can save on your current credit card processing fees. Complete one simple and instantly receive multiple quotes for credit card processing services.