You can streamline your AR process and cut costs in many ways. Here are the top 5 ways you can reduce or eliminate credit card fees.
1. Consider Level 3 Interchange Processing
Federal Reserve regulates the exchange rate for each credit card. This rate changes every two years. The rates vary greatly depending on factors such as the type of card, issuing bank, and others. B2B businesses that use this system’s level 3 data processing can save a lot on credit card fees.
For businesses to qualify for Level 3, they must provide more transaction details, including:
- Merchant name
- Transaction Amount
- Transaction date
- Customer code
- Taxes and fees
- Customer postal code
- Invoice number
- Order Number
- Freight cost
- Line item details
Your business will also need a payment portal to authorize these transactions.
Level 3 processing reduces your transaction fees and offers ticket discounts on invoices over $7,500. Businesses can reduce transaction costs by up to 75% depending on the size and type of transaction. This can save you a lot of money if your business fulfills many large orders.
2. Add a Convenience Charge for Credit Card Use
Businesses can save money by using credit card surcharges to pay for payment processing. Some states, however, have banned the surcharges. Businesses should therefore check local laws to ensure they are allowed before implementing.
3. Accepting ACH Payments
You can also save money by avoiding them. Automated clearing house (ACH), a computer-based system for efficiently processing domestic transactions, is widely accepted. ACH is used by many financial institutions and can be used to make debit or credit payments. ACH may have some fees, but they are much lower than the fees associated with credit card transactions. You can also avoid chargebacks and fraudulent transactions.
4. Use a Bank Payment Network
The Paystand Bank Network enables businesses to transfer money electronically without having to pay transaction fees. The network is the largest digital payment network for businesses, covering over 90% of US banking and 98% of commercial accounts.
Paystand Bank Network offers real-time fund transfers and automated payment settlements. The Paystand Bank Network also allows for secure one-off or recurring payments to banks that speed up payments and reduce chargebacks.
Each in-network payment made by a business is recorded on the Blockchain. This creates a digitally auditable, secure, and verified record trail. These records cannot be altered and ensure that your transactions are legitimate.
5. Go Digital
Digital payment rails allow for real-time transfers of funds and automated settlements. AR formats enable faster, more secure, and easier transactions. This helps businesses to get paid quickly and efficiently. AR teams can automate invoicing to improve cash flow and reduce errors. The digital systems provide real-time tracking of payments and fund verification, eliminating the need for manual follow-ups and processing fees. Integration with ERP systems is possible.
6. Invest in Security
Increasing the security and transparency in your payment system will reduce any potential fees or upcharges. For example, allows secure one-off or recurring payments between parties that are trusted. instead, the system uses cryptography and digital signing to verify the validity of every transaction.
Paystand payments are initiated by the customer, which shows authorization and intention to pay immediately. This reduces the number of refunds and chargebacks that are commonly associated with credit cards.
7. Integrate Systems
Businesses can save money if they examine AR processes and integrate systems that reduce errors and manual data transfers, as well as the time required to correct them. They can also improve employee morale and provide real-time info.
8. Automate Wherever Possible
AR automation, which is similar to integration, can streamline workflows for companies. Paystand customers, for example, can integrate an “instant payment” button that automatically receives funds when a customer pays. This feature is easy to use and can be integrated into invoices, emails of reminders, or any other communication with customers.
This post was written by a professional by Exzact Business Solutions. TRANSPARENT | AFFORDABLE | SIMPLE Merchant Services, Websites, and Social Media Done Right. https://exzactbusiness.com/ are on a mission to educate local businesses to ensure smiles, savings, and solutions. Exzact clients save an average of 30% on their processing alone. No Contracts, Free Equipment, Local Support, No Rate Increases, and More. Exzact Business Solutions goal is to educate the local business community in order to ensure smiles, savings and solutions. Exzact Business Solutions is an Independent Sales Organization with strategic partnerships dedicated to cultivating reliable and trustworthy relationships in the Payment Card Industry, allowing to tailor products and services to the needs of each merchant. Contact EBS and see what a difference having the right advocate can make!
