Negotiate credit card fees

At Madisons we can provide businesses in the Manchester area with help and advice on finance and on a wide range of business issues. Here are some tips for reducing credit card fees...

Did you know that the rates set by banks and other credit card companies are negotiable?

Different companies have different charges for processing credit card transactions, so it pays to shop around for the best deal.

Credit card processing fees are determined by:

  1. The number of transactions
  2. The sterling amount of these transactions
  3. The type of equipment used (use swipe machines not imprinters)
  4. Your ability to negotiate fees with the bank

Depending on these factors and on the card used, processing fees can range from 1% to 4%. At the top end, the credit card company can be taking a large part of your bottom line away, and when margins are tight these fees can mean the difference between enjoying a profit or slipping into the red.

Trying to trim these costs by setting a minimum level for credit card transactions risks losing sales if the limit is set too high.

A better way is to negotiate a reduction in the processing fee with your credit card company.

If you are in the Manchester area and are looking for professional advice from an experienced team of accountants, contact Madisons.

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Madisons is a trading name of Madison Business Services Limited Registered office: Bushbury House, 435 Wilmslow Road, Withington, Manchester, M20 4AF. Company Number: 03800186, VAT Registration Number: 741 1182 67 Registered to carry on audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales. Details about our Audit Registration can be viewed at www.auditregister.org.uk and www.cro.ie/auditors for Ireland under reference number C009016107.
Telephone: 0161 434 3535 | Fax: 0161 445 0430 | Email: enquiries@madisons.co.uk.

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