Most merchants think getting a lower overall rate is the only way to save money on credit card processing fees. If you are one of those, listen up on how to become more savvy and beat the credit card salesperson at this game, especially if you are an auto dealer or a restaurant.

First, the only rates you can negotiate are the percentage, the transaction fee, the monthly fee, the portal fee, and the PCI fee. Interchange rates, i.e., the wholesale rates set by the banks, are not negotiable.

Some merchants think that the effective rate is negotiable. The effective rate is the bottom line summary of all the fees paid on your monthly statement divided by your monthly volume. This rate varies with the type of cards you receive for payment. Low-risk cards like debit cards have a lower interchange rate than corporate cards, which have the highest risk.  

Interchange rates for credit cards are higher than interchange rates for debit cards. Interchange rates for rewards cards are even higher. Interchange rates for non-swiped cards are higher still. Interchange rates for corporate and government cards are the highest because they have the highest risk for fraud. So, the effective rate will depend on the mix of cards you receive in your business. Obviously, a business that takes a lot of corporate or government cards has a higher effective rate than a fast food restaurant that takes many debit cards.

But speaking of high-risk B2B (business to business) and B2G (business to government) cards, there is a way to reduce the rate of those types of cards along with B2G or government cards. Rates on those cards can be lowered if the risk of fraud can be reduced on those types of cards.   

Dejavoo terminals and POS systems have coded into their hardware a way to lower the risk and, therefore, the rate on B2B and B2G cards. For each transaction, they auto-fill some data enrichment such as a customer purchase order number, tax amount, and a product description based on the industry.

Savings on B2B and B2G cards average .80%! That is just shy of 1% on these types of transactions! Just think of the savings even if you only take corporate and government cards 20% of the time! And there is no extra effort or steps on your part. Customers continue to dip or tap their cards, and you save money automatically!

Call Electronic Money Company at 505-296-2847 and ask for Gingergaye. We can help you save money on those pesky credit card processing fees quickly and easily.  

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