How to Keep Payment Fees Low for Your Small BusinessIn addition to figuring out the logistics of how to get paid, you may have to pay multiple vendors different payment processing fees.

The best part of business is getting paid, but getting paid isn't always as easy or simple as it should be. In addition to figuring out the logistics of how to get paid, you may have to pay multiple vendors different payment processing fees. Thosefees can add upfast. But you have options that can help keep things simple while lowering your fees. Read on to learn more.

Integrated vs. non-integrated payment processors

在线和离线信用卡支付需要ries of important steps to complete. The ability to accept cards online requires both amerchant accountand a payment gateway. A merchant account is kind of like a bank account used to aggregate payments from credit cards, debit cards and sometimes ACH payments. A payment gateway is a system used to process payments, generally online, that feeds into the merchant account.

Thanks to the magic of online business, you can sign up for a two-in-one package to accept payments online. For a percentage fee, flat fee or combination of the two you can process all of your payments for automatic deposit in a digital wallet or straight to your bank account. This is exactly whatDue paymentsis all about!

Providers that do not integrate all parts still exist. You can work with a payment gateway that requires an outside merchant account, or pick a merchant account first and look for compatiblegateways. But if you can get the two in one, nice, integrated package, it is much easier to use and manage. Even better, getting two in one gives you better control and information about the fees you pay for your payment processing service.

Choose your vendors wisely

Now that you know what type of payment processing vendors you may need, it's time to pick your favorite. As we already discussed, getting your payment processing from one vendor is easier than two, but it can also save you money.

Consider it like this, if you have two vendors for payment processing, you pay fees to two companies. If you pay fees to two companies, they both need to charge enough to stay in business. That's two sets of businesses reaching intoyour company's profit margininstead of one.

While it is possible to get a better deal with two vendors, it is twice the work and much less transparent. For that reason, going with an integrated vendor that gives you clear pricing is a great way to keep payment fees low.

Shop around for fees before making a commitment

Once you have limited down the type of payment processor you want, it's time to look at the rates. Payment processors typically charge in one of twobilling methods:

• Flat percentage fee for every payment
• Flat percentage fee plus monthly recurring fee

There is no right or wrong here, just what makes the most sense for your business. In most cases, the providers with a monthly recurring fee charge a lower percentage fee for payments processed. There is a tipping point in dollars processed where one makes sense over the other. You just have to do the simple math for your business to compare.

For my business, an integrated flat fee payment provider worked best. I don't process enough payments per month to justify a monthly recurring charge. But when I have an occasional credit card payment come through, I know I have it handled.

Fees are a part of doing business, but don't let them eat your profits

When you are in business, you canexpect to pay feeshere and there. That's just part of running a business. But if you work hard to manage those fees, only sign agreements you understand and do some due diligence before choosing your vendors, you won't go wrong.

(By Eric Rosenberg)