How Much Do Credit Card Processing Fees Cost In 2022?
As a business owner, you are always looking for ways to reduce costs. Credit card processing fees can be a significant expense, especially for small businesses. In 2022, the average credit card processing fee will be around 1.75%. This means that if you process $100 in credit card sales, you will pay approximately $1.75 in fees. There are a few ways to reduce these fees, but ultimately you will need to accept that credit card processing is a necessary cost of doing business.
If you are looking for ways to reduce your credit card processing fees, here are a few tips:
- Review your statement regularly
Make sure you understand the fees that you are being charged. Many processors will charge a monthly fee, as well as a per-transaction fee. The best way to reduce these fees is to process more transactions. If you process less than $1,000 in credit card sales per month, you may want to consider a different payment processing solution.
- Negotiate with your processor
If you have a good relationship with your credit card processor, you may be able to negotiate lower fees. This is typically only possible if you are processing a high volume of sales. If you are not sure how to negotiate, there are many resources available online that can help.
- Use a service like Square or PayPal
There are many credit card processing services that charge lower fees than traditional processors. Square, for example, charges a flat 2.75% fee per transaction. PayPal also has a similar pricing structure. If you are processing a small volume of sales, these services may be a good option for you.
- Accept other forms of payment
Another way to reduce your credit card processing fees is to accept other forms of payment. If you are selling products or services online, you can offer customers the option to pay with PayPal or Venmo. You can also accept checks or money orders.
- Use a rewards credit card
If you frequently use a credit card for business expenses, you may be able to get a rewards credit card. These cards often offer cash back or points that can be redeemed for travel or other perks. Just be sure to pay off your balance in full each month to avoid interest charges.
Ultimately, there is no perfect solution for reducing credit card processing fees. However, by following these tips, you can minimize the impact that these fees have on your business.
