US Bankcard Services Industry Blog

Tuesday, November 23, 2010

Tips on how to Manage your Processing Cost

In these hard economic times, it’s always good to be cautious with the way you handle your business transactions. Here are some ways on how to manage your processing costs. 1. Physically Swipe Customer Cards whenever possible: Entering in card numbers using a keypad is a common reason for higher transaction rates. It has a higher risk of error and fraud. 2. Accept PIN debit cards: There has been a continuous expansion in the usage of debit cards. Depending on your rates, generally speaking, the rate for a debit card transaction can be lower than some of the other processing rates. By accepting debit cards, you can lower your processing cost. 3. Review your processing procedures (Card Not present): There are times when you need to process transactions without the card present. The terminal being used to process transactions may ask for certain criteria in order to complete the transaction without carrying a higher rate. Follow the steps carefully. 4. Use the Address Verification Service (AVS) correctly: Generally speaking AVS occurs when the card is not present, and transactions are keyed in. Be sure to input the required field correctly to avoid higher rates. 5. Send settlements on time: Settle your transactions every day after closing to avoid higher rates. The longer you pro long your settlements, the higher your rates. 6. Obtain authorization/settlement mismatch exemptions: Be sure to check that your merchant category code is suitable to the nature of your business and payment structure. If your authorization amount and settlement amounts do not match, be sure to expect payment downgrades.