All businesses know that running costs are on the rise and that the lower we can get costs, the better. One of the costs that businesses have to contend with is the cost of their payment service provider (PSP). It’s important to keep this cost under control as it can quickly add up if left unchecked. The good news is that there are a few tips you can use to try and negotiate a better deal with your PSP. Here are some of them:
1. Analyse Your Needs – Knowing what you need from your PSP is key to getting the best deal. Make sure you analyse your needs before you even start negotiations. Take into account things like transaction types, refund policies, and payment methods offered by various PSPs. This will help you determine which one is most suitable for your business – should you buy EFTPOS machines or pursue another route?
2. Know Your Market – Knowing the market rate of PSPs in your industry can be a great bargaining chip when negotiating with your PSP. Check what other businesses are paying and use this to inform how much you should be willing to pay your current provider.
3. Make a Good Offer – When making your offer, make sure it’s reasonable and fair. Don’t ask for too much or too little. By offering something reasonable, you’re more likely to get a favourable response from your provider.
4. Ask for Help – If you don’t have the necessary expertise to negotiate with your PSP, it’s worth asking for help from a professional. They can offer advice and assistance on how to make sure you get the best possible deal.
5. Choose a Fee-Free Payment System – Did you know that you can pass EFTPOS fees onto customers as a surcharge in Australia? Although you may lose a small portion of the transaction, it’s worth considering if you can save more in the long run by eliminating processing fees. Suddenly, you’re not responsible for the fees and you can reduce costs as a business.
6. Consider Alternative Payment Options – You don’t have to be tied down to one payment system. Consider other options like online payments, direct debit and even prepaid cards to see if they can save you more. Options such as these often provide more flexibility and convenience without having to pay fees for each transaction.
These days, EFTPOS systems are often the most reliable and secure way to accept payments but it’s worth looking into other systems to make sure you don’t miss out on any potential cost savings. If you haven’t seen EFTPOS systems before, they allow you to accept payments from customers with a credit, debit card, or even a mobile wallet.
What’s more, since they inherently contain a POS system, they often provide additional services such as a loyalty program and the ability to print out customer receipts. Suddenly, you’re monitoring customer transactions, offering discounts and incentives, and tracking sales – all with one device.
When negotiating an agreement with a payment service provider, you’ll want to keep this advice in mind. Good luck!
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