As a contractor, you should offer credit cards as a payment option. While it is a convenience to your customers and can help increase your closing rate and average ticket, you need to fully understand how it is impacting your profits. Most credit card companies and processors have hidden processing fees you’ll want to be aware of so you can make the most informed decision. The following are just a few to look out for.
Padding Legitimate Assessment Fees
Assessment fees aren’t hidden. They’re actually non-negotiable and are clearly disclosed by credit card brands. This only becomes a problem when the processor charges more and connects it to the assessment fees. This is known as padding. When you are choosing a processor, be sure you’re being offered pass-through pricing.
Breach of Data
Even if your credit card processor is “PCI Compliant,” this does not ensure that you won’t be fined in the event of a hack, breach, or mishandling of credit card data. You are still subject to fines assessed by the credit card company depending on the size and scope of the breach. Look for a processor with a Breach Assistance program that will cover up to $100,000 in fines per incident/per location. Fines in small to medium-size businesses, related to mishandling of credit card data, average about $35,000. Protect your business and your customers before it’s too late.
What You Can Do
One of the best things you can do to avoid hidden fees is to choose a processing company that has straightforward pricing. Read the fine print so you understand exactly what fees will come out of every transaction. If something doesn’t seem right to you, don’t be afraid to question it.
Contacting the Professionals
You’re a professional contractor, but that doesn’t mean you don’t need other professionals to help you with your finances. Join NAPAC and find out just how much money you have been leaving on the table. Before you join, we will perform a free audit to show your projected savings, security, and protection with our credit card processing partner. Start saving by calling 267-214-6229 or sending us an email today!
