Savings Done Simply- Reducing Charge Card Transactional Costs

Dec. 10, 2012 - PRLog -- Savings Done Simply-Reducing Charge Card Transactional Costs

By Scott Einiger

Copyright 2012. All Media Rights Reserved

For businesses to be profitable, the adage time is money is a valuable lesson.   Each month there is staff to pay, monthly rent and other routine costs and expenses in successfully running a business.  All organizations know the importance of paying their bills timely to be taken seriously. So how quickly you get paid, and how much of that payment you retain, is critical to the overall success of your company.

The first step in enhancing profitability is increasing your understanding of the true transactional costs associated with how customers submit their payment.  This is true whether a company is paid by check, cash or through a credit, debit or charge card for its goods or services.  For purposes of this article. we will focus on all card payments which make up 1/3 of all US consumer payments for their goods and services.

For  consumers, ease of payment is important and can often distinguish your business from your competition. Not having electronic payment solutions, and or debit, credit or charge card payment service options can put you at a disadvantage. Obtaining free analysis of your businesses transactional costs is only an email away at www.chargecardsavings.com.

Analyzing credit card processing costs online with no obligation and at no cost is a huge benefit to gain a better understanding whether your current merchant processor is treating you fairly.  The savings that any business can achieve by obtaining such an audit can be in the thousands of dollars.   Lowering your transactional fees can significantly effect your bottom line profits in a positive manner.

A firm or organization that offers to process a companies  credit or other charge card payments is known as an ISO (Independent Service Organization).  it will do so for a transaction fee, typically a payment above the bank or discount rate that is set. The bank or discount rate is the percentage the bank charges as per American Express, Discovery, Visa or MasterCard for example.

All banks have at least three rate structures for credit card processing: 1) retail face to face processing are usually the lowest, 2) phone, mail and Internet rates and 3) imprinted or phone authorized rates.  Depending on the type of charge card, used their are different transactional  costs applied. It is very important for each business to correctly classify  the way it accepts charge card payment to achieve the best rate structure.  Whether through sophisticated online credit card payments or through swiping a credit card machine, this analysis is critical to obtain the best pricing.

Come to our website and learn about your own transaction costs which  can be improved  immediately.  Improve  your own bottom line profits at by taking our challenge at www.chargecardsavings.com.