Merchant services and credit card machines are something we all grumble about, but they are also something we all need. Today, people don’t carry much cash and even fewer write checks so if you want your numbers at the end of the day to meet your goals, you have to accept credit cards.
Here are a few ways to make it little less painful…

Buy your machine…don’t lease it. Leasing sounds good, “It is only $42 a month to lease a machine” until a four year term is attached ($42 x 48 = $2016!). Everyone has a tight budget in the beginning, but it will save you money in the long run to buy your machine outright.
Buying a credit card machine from the company that is processing your credit card transactions could be a mistake too. Sometimes, your processing company marks up their credit card machines considerably and might even tell you that you have to use their machine which is completely untrue. So before committing to a machine purchase, know your options. Find out what kind of credit card machine your processing company wants you to use and check around for pricing. We can get pricing quotes for new and refurbished machines and have saved retails tons of money. Even if you have to send the machine to your processing company for programing, you might be able to save to much money on the machine that it would be completely worth it.

Review your account.
Every year talk to your merchant services company to have them do a review of your account and ask for a better rate. On average, merchants change the company that they use for processing every 2 ½ years. Processing companies know this and don’t want to loose your business. Make that phone call. As with all expenses, shop them. It is all about educating yourself.

Take Debit.
Any purchase over $40 should be run as a debit, if possible. A $100 purchase costs approximately $1.60 to process as a credit card, while run as a debit, it would cost you about .25-.45 cents. It doesn’t sound like much until you think about a larger purchase, or total your charges for the year. Those pennies add up. Call your merchant service provider and ask what your percentages are.

Remember, a smart business person makes money because they are careful about how they spend it.