How to Handle Transaction Fees as a Business Owner

If you’re in the business of running a business, you know transaction fees are not cheap. So, how should you handle this fee as a business owner? Let me provide some insight.

A business has to pay a transaction fee each time it processes an electronic payment, such as a credit or debit card sale, for a customer… and it’s not cheap.

When it comes to transaction fees, there are usually three parties involved — the card issuer, the card network, and the payment processor.

Fees can add up fast and generally, they can cost a business 1.5%-3.5% of each transaction total. Handling fees as a business owner is no walk in the park, but a few things could help.

1. Having a minimum amount that customers have to spend in order to use a debit or credit card.

2. Consulting with a credit card processing expert to learn the ins and outs of these fees.

3. You could even put those negotiating skills to use and talk with your credit card processors to lower your fee percentage.

Some business owners pass on these fees to their customers, while other business owners take it to the chin and claim it as a business expense. Listen, as a business owner myself, I understand every line item on your business budget counts — make sure inertia doesn’t catch you slippin’.

Review your business expenses annually, and negotiate when possible.

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