Credit card fees can be a heavy burden for many businesses. If you’re struggling to find a way to afford these costs, it’s time to update your policy. Find out how you can use a Clover Station 2.0 and a cash discount or credit card surcharge policy to improve your financial situation while still serving your customers. Explore these legal options today to keep your business moving forward.
Many business owners feel they need to cover all the costs of offering credit card services. By continuing to pay these fees without charging your customers more, your business may be slowly sinking with burdensome fees.
Use a Cash Discount Program
One great way to reduce the burden of credit card fees is to use a cash discount program. This completely legal program gives you the option of offering a discount for customers choosing to pay with cash. This discount is usually around 3% or 4%.
A cash discount program is a more positive way to frame your necessary credit card fees. Instead of requiring credit card customers to pay an additional 4%, you’ll include this percentage in the set cost of your items. Then, simply add a 4% or 3% discount for customers willing to pay with cash.
This process can help you avoid most or all of the cost of your credit card processing system. By framing the cost as a discount, you can encourage customers to pay with cash without discouraging credit card customers from making a purchase.
Consider a Credit Card Surcharge Policy
Another way to offset this cost is to add a 4% surcharge for credit card customers. Check your local laws and regulations about including surcharges, as there are still a few states that don’t allow this. You can’t add a surcharge to a debit card transaction, so you won’t be charging customers a surcharge if you aren’t paying a processing fee for their transaction.
Choose a New Credit Card Processing Company
You may simply be spending too much on your credit card processing fees. Before adding a large credit card surcharge or cash discount, shop around for a new credit card processing service. You may be able to reduce this cost and pass the savings on to your customers.
Some companies require you to pay a high monthly fee and sign on to a long-term contract. Look for options that don’t require these restrictions to keep your business flexible and save money.
Offer Flexible Payment Options
Modern payment options have reduced the need to rely on credit card sales for every purchase. Explore other payment options that may not require a credit card transaction fee. These flexible payment options allow your customers to conveniently pay for items without incurring a surcharge.
Learn More Today
Don’t be buried by credit card transaction fees. There are many ways to reduce or completely avoid paying these fees yourself. Use these methods of passing the fee on to your customers and find out how a free Clover Flex can give you the payment options and reduced fees necessary to stay competitive in your industry.