There's often a narrow margin between a successful business and a struggling one. Something as simple as credit-card processing fees can spell the difference between black ink and red. But if you think those fees are an unavoidable cost of doing business, think again.
When the Fine Print Isn't So Fine for You
As we trend toward a cashless society, more and more businesses have begun accepting credit cards — which also means accepting the processing fees that come along with them. But what many merchants fail to realize is that those rates are flexible. And the merchants often end up paying way more than they need to.
To give you just one example: Let's say your business accepts different cards with processing rates that range from 1% to 3%. Some third-party processors simply round everything up to the highest rate and charge 3% for all cards. So even if you accept four cards that charge 1% and just one card that charges 3%, you end up paying your processor 3% across the board. The merchants are actually entitled to rebates in that scenario, but few know enough to ask.