7 Tips To Save Money On eCommerce Credit Card Processing

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Note: The following is a guest post written by Frank Collins of CreditCardProcessing.net

Electric commerce or what many people refer to as eCommerce has grown in numbers and popularity over the past few years.  With almost every American household having access to the Internet, more and more consumers are turning to electronic networks to buy and sell products online. This greatly expands business opportunities and options for consumers, however it also brings about a new issue with which merchants must contend. 


When products and services are exchanged online, there is a need for the immediate transference of funds.  This requires the use of credit cards and a credit card processing service. 

Here we look at ways merchants can save money for their eCommerce credit card processing services. 

Shop around 

One of the reasons eCommerce is so popular among consumers is because it offers individuals an easy and convenient way to comparison shop from the comfort of their own home.  Just as consumers can scour the web for the best deal, the same is true for merchants shopping for the best credit card processing service.  There are hundreds of options available from which to choose, each with their own benefits and drawbacks.  By researching individual processors in advance, you have the opportunity to find the best system that will work for your business at a price you can afford. 

Look for hidden fees 

Credit card processing statements can be difficult to read.  For this reason it is important to understand exactly what fees you may be responsible for paying and what fees may be hidden in your contract.  Hidden credit card processing fees are often responsible for driving what would otherwise be an affordable service to an extraordinary bill. 

Learn how to lower your rates 

As a merchant, it is your responsibility to understand the pricing structure.  This not only includes spotting and eliminating hidden fees, but also how the pricing structure works.  Do you have an understanding of percentage-based processing fees and per-item-based processing fees?  If you do not know how you are being charged for each transaction, you could be losing a lot of money each time you process a sale.

High risk merchants pay more

Understand that online businesses are by their very nature considered high risk.  If your business is in the gambling or adult entertainment industries, it will be even more high risk.  Learn how to find a credit card processing service that handles high risk merchants at an affordable cost. 

Card Not Present Transactions 

Internet businesses are more vulnerable to fraud, since the customer is not physically present with a credit card.  Find a specialist that caters to "card-not-present" transactions and you will find savings by reducing chargebacks and other issues resulting from fraudulent use of credit card accounts. 

Find a processor with real time reporting 

While this may not save money in processing fees, it will certainly save money over time.  With real time reporting you have the ability to reconcile credit card activity quickly and spot potential problems areas such as authorization successes and failures, downgrades, chargebacks and bank deposit issues.

Change processors when needed 

Changing credit card processors once your business is up and running can be a real pain in the neck.  Unfortunately it is not always possible to find the perfect processor from the start.  If your business is already established and you feel you are paying entirely too much for your current credit card processing service, it is never too late to make a change.  By considering the points listed here, you can find a more affordable and efficient processor to handle your credit card processing needs.  

Frank Collins is a writer with a mixed web product management and financial background. He writes on various subjects related to ecommerce websites and has a professional blog about credit card processing.