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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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Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.
As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.
Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.