Now the answer to the million dollar question…how? There are some avoidable factors that may cause you to pay a higher rate, but there are also steps that you can take to help lower them.
Listed below are some tips on how to avoid unnecessary rate downgrades (higher rates):
Swipe your customer’s card whenever possible!
- Keying in card numbers has a higher risk for error and therefore has a higher overall decline rate
- Keyed in transactions also have a higher risk of fraud
- As a result, the card associations charge higher rates for credit cards processed in this manner
Follow ALL prompts on your credit card terminal. Do not bypass or skip any prompts before completing the transaction!
- If prompts are bypassed, card information is not verified and the card is downgraded and results in higher rates
- When training employees, make sure that they are briefed on this so they can help you receive the best rates
Settle (batch) your transactions within 24 hours of authorization (swipe)
- The longer it takes to settle your transactions, the higher the risk for charge-backs
- Have your terminal auto settle/auto batch at a set time each day (after business hours)
- Inquire with your processor about the cutoffs for your type of industry to avoid a downgrade
- Accept PIN debit if your average debit sale is over $50, (PIN debit rates are generally lower than signature debit rates at this point)
You can see a difference in your monthly bill by following these easy steps. Please give us your feedback and share your processing tips/questions below or contact a TN Business Solutions representative!