Using POS credit card processing terminals seems easy enough, but some simple tips will help you save with your POS credit card processing terminals on hidden charges you are probably incurring because of how you use them.
You are all set up as a merchant, you have your accounts properly setup, your credit card processing terminal is synced with your account and you are ready to start accepting purchases with a card. You think you have a handle on your discount rate, having agreed to a 3% per transaction charge, but you are quite surprised come your month statement that your charges were much higher. What happened?
The following tips will help you avoid any less than obvious fees and charges that can apply depending on how you use your credit card processing terminals.
- Be sure when using a POS terminal to swipe the card rather than manually input the cardholder information. If it does not read the card properly the first time, do not give up, swipe it again and avoid manually entering as this can affect your rate from .5% and higher.
- Prevent chargeback frequency and disputes by always checking additional identification if the signature line is not signed by the cardholder. Chargebacks and disputes are very expensive, and a single $ 30 refund charge can remove a smile, multiply that by many transactions and your hard work is ruined
- Do not ignore digital prompts that your terminal provides. Your POS terminal will often ask for additional information for corporates cards and some debit cards, ignore these prompts at your peril, as not following the directions also can lead to an increase of your transaction charges.
Be sure to process your transactions on the same day the purchases were made. Use the batch upload function within the same period of the purchases so that your transactions are not downgraded. What this means, if you process your payments after 24 hours, payment processing companies typically increase your transaction charge
These are just a few of the unexpected ways that POS credit card processing terminals, if used improperly can increase the costs of doing business. As you are well aware, every percentage point can translate into huge sums, so keeping an eye on the details can keep your business thriving.