Startup companies have a lot to prove before they can establish themselves as valid organizations. Showing credibility is an important step towards attracting a steady base of customers, but organizations must also legitimize themselves financially in the eyes of banks and credit card companies.
When businesses first start out, they have very little say in regards to their own finances, particularly when it comes to payment processing fees. Credit card swipe charges can be costly and can hurt organizations because they don't yield a strong value with each transaction.
An article in the online publication Resource Nation addresses this issue and lists a number of suggestions for companies to follow in order to save on payment processing. While some tips include finding ways to promote the use of cash – which mitigates card processing fees – it's becoming an increasingly irrelevant payment method.
It's important to find ways to reduce payment fees while accepting credit cards. The article suggests that by building a reputation by processing more transactions, businesses can gain some leverage with credit card companies.
"If you're a start-up without a proven track record, it will be difficult to get the lowest rates available," the article says. "But as your business grows and your reputation improves, it could be worth it to check back in with your processor to renegotiate your rates or find out if they'd be willing to waive other fees in exchange for keeping your business. You never know until you ask."
In order to do this, companies must process a large number of transactions first. They should also implement proper credit card processing software. This allows organizations to streamline the checkout process and build a strong reputation as a reputable business which, in turn, will help build popularity and increase transaction numbers.