How many promotions do you receive in the mail every month pledging lower rates on your credit card processing fees? If you've ever been tempted to check out one of these offers, you probably were told there's no actual way to do any better than what you currently pay. Here are some lesser-known but just as effective, ways to lower your monthly costs with methods other than your Sage Intacct credit card processing rates.
If nothing else, this endless stream of junk mail from these processors demonstrates a very clear willingness to undercut the competition for your processing business. Just ask anyone in the payment industry, and they will have at least one tale of woe that ends in losing a long-term client because another company promised a better price. They may be willing to cut into their own revenue just to win your business.
While we see it as our responsibility in our industry to create savings for you, the merchant, this has typically been accomplished by cutting into the margin, and not much else. This leads to a common misconception that the only way to lower your costs is to lower your fees, such as the “discount rate” or “transaction fee.” There’s only so low the industry can go in this race to save on rates at the bottom line.
Generally, what's missing from those bold offers and emails touting lower rates is where many new opportunities to save are actually hidden and that's your particular processing habits. Sometimes referred to as interchange optimization, a trustworthy payment provider should offer and be able to analyze your history in detail to find patterns that lead to more transactions qualifying for the lowest rates possible.
An example of such an opportunity is ensuring that sufficient data is captured and passed on in order to qualify for the best rates. Many companies that process payments from business or government purchase cards (or P-cards) fail to enter the additional Level 2 and 3 data for B2B (Business to Business) or B2G Business to Government) transactions, which means that there's no way to ever qualify for the best rates. A good partner will handle this for you.
Since the start of the pandemic, we have seen a flood of new business technologies in the marketplace. Technologies like mobile payment and peer-to-peer electronic funds transfer enable companies to continue operating their business and keep it afloat in spite of disruptions.
These emerging technologies offer a new level of convenience and efficiency, allowing companies to benefit from the use of automation. Long term, when you automate tedious, repetitive, and manual tasks, you’ll save time and money. The elimination of duplicate data entry alone will enable your finance team to run leaner, freeing them up to do more to help the company grow, rather than just manage the day-to-day business.
Look for a solution that has flexible reporting, card storage, an account updater, hosted payment pages, and mobile processing. Find a team of experts that can help you understand how to determine the needs of your unique business and recommend a bespoke solution. The right team will help you solve your challenges and create value over time.
Paya is committed to delivering best-in-class integrated payment solutions across the full suite of Sage ERP products. We are proud to be Sage’s preferred partner for Integrated Payments in the US. Paya has enabled thousands of businesses to optimize billing and invoice processes, deliver more payment options and greater flexibility to their customers, and improve back-office efficiencies.
Contact our Paya team to schedule a free consultation today!