BRS Newsletter

Sept/Oct 2008

"If you do build a great experience, customers tell each other about that. Word of mouth is very powerful."
Jeff Bezos

"People are definitely a company’s greatest asset. It doesn't make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps."
Mary Kay Ash

"Happiness is a positive cash flow." Fred Adler, Venture Capitalist

If you’re passionate about what it is you do, then you’re going to be looking for everything you can to get better at it.
Jack Canfield

"It was the best presentation on this subject I've ever seen."
-Harold Rousso

“This course has been a wake up call to me, to keep my eyes wide open as my company grows in the future.”
-Michael Evans

5 Ways to Save Money on Credit Card Processing

Anthony Nguyen

Okay, if you're reading this article, you probably already freely acknowledge that accepting credit cards is critically important to your business. According to the American Bankers Association, credit and debit cards became the primary method of payment accepted for in-store purchases in 2003 over cash and checks. In 2008, debit card and credit card transactions dominate the share of in store payment methods, and of course account for the vast majority of online transactions.

But, for the average small business, the cost to accept credit cards is a big burden on the bottom line. Some businesses, like coffee shops, have started passing the cost of credit card transactions onto the consumer - which can be a turn-off, especially when larger businesses with corporate merchant rates don't have to charge the same fees to their customers. Merchant processing fees have risen in recent years due to the high cost of identity theft being passed onto small businesses. Even though the cost is high, for many types of businesses, not accepting credit cards means no sale. However, by taking some simple steps to optimize your merchant account, small business owners can save big on their merchant account bills.

1. Encourage debit card usage

Debit card processing fees can be much cheaper than accepting credit cards, especially for big ticket items. The cost to process a debit card is typically a flat fee around $.50, whereas credit cards typically cost ~3% of the total transaction plus a ~$.30 fee for each swipe. Any transaction over $8-$10 will save the business on processing fees, and also, is less likely to be fraudulent due to PIN verification. For example, a $400 purchase may cost the merchant up to $12.30 to process a credit card, where a debit card would only run $.50!

Improve
Your Costs

BRS has partnered with NWPSolution to provide you with the most affordable and secure merchant processing services in the nation. As partners in processing, we can save your business time and money in the following:

	Credit & Debit Card Processing
	Equipment Leasing & Sales
	E-Commerce & Online Giving
	24/7 Technical Support & Customer Svc.

Workshops
for Business Owners

Over 97% of the people attending our workshops say they've substantially increased their under- standing of the health, strengths and weaknesses of their companies. Change the way you manage your business, increase your cash flow, and find profits you never knew existed.

2. Stick to Visa and MasterCard

As hard as Discover and American Express work to make sure their cards are accepted everywhere, it simply doesn't pencil out for many merchants to take those cards. Fees to process American Express in particular can be up to 100% higher than Visa and MasterCard. Only about 11% of consumers use American Express (Cardweb)- the company claims those consumers are a much more wealthy demographic with more money to spend at your business. That may be true, but nearly every AmEx card holder also carries a Visa/MasterCard. Encourage them use it at your business and you'll save money.

3. Avoid processing through banks

You may be surprised to find that processing credit cards through major banks actually costs more than you think. While they offer the convenience of having multiple services like checking accounts, savings, payroll processing, and merchant processing on one statement, their fees tend to be substantially higher than a direct merchant processor. Ironically, many major financial institutions end up opting to outsource their merchant processing accounts to independent merchant processors, then mark up the service. If you currently are processing through a bank, try comparing rates with an independent merchant processor like Northwest Processing Solution - you'll probably be surprised with the savings.

4. Increase credit card sales through using new technology

Okay, this one doesn't save you money on merchant processing, but it can definitely increase your bottom line which is the goal after all, right? Try looking into new technologies like wireless credit card processing. New remote handheld terminals allow merchants to accept credit cards at trade shows, craft fairs, and farmers markets, opening up new venues for your business to make sales. Now it is also much easier to sell merchandise online with easier ecommerce solutions and online merchant gateways like GlobalPayNet and Authorize.net. By accepting payment online you can open up entirely new ways to do business. Non-Profit groups like churches, schools, and charity organizations can even use an online gateway to accept donations right from their website.

5. Compare merchant processing fees regularly

Independent merchant processors tend to offer local service and be very competitive on rates and fees. Any business that is looking to save money on merchant processing should regularly compare their processing statements to current market rates to get the best deals. Because rates are complex (there are over 50 different types of credit card transactions, each with their own rate), it is best to just send over your current statements to a merchant processing company and let them analyze your current costs, and help you determine if they can offer a savings. Make sure not to pay for that service; most reputable companies should offer to do that analysis at no charge.

By taking these simple steps, most businesses stand to save hundreds on credit card processing every month without ceasing to accept credit cards or passing fees onto customers. Best of luck this year and enjoy the savings!!

To discuss credit card processing,
contact Rod Bristol, 800.488.3520 or send him an email.

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our subscribers' names and/or email addresses.

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