Running a café is difficult when you’re held hostage by your card machine!
You know that you need to accept card payments – your customers rely on it. However, when that monthly bill comes through from your card payment provider, it’s hard to ignore all the inflated charges, added fees and additional transaction charges that you didn’t know that you were agreeing to in the first place.
In this post, I want to share the easiest ways for you to check if you’re paying more than you should be for your payment processing so that you can keep your hard earned money.
Improve Your Profit Margins
Profit margins when running a café are tight; as a café owner, you have worked so hard to find the best possible suppliers for your products and negotiated the best prices. There is absolutely no reason for you to be paying 50p more per 100g of coffee that any of your competitors and it’s really important that you KNOW you are on the best possible deal for you – otherwise you have less control over your bottom line and your supplier invoices start eating into your profits.
Your card machine deal is absolutely no different to this – your card payments provider is just another supplier and it’s your right to know you are on the best deal.
What can you do about this?
1: Check For PCI Non-Compliance Charges
The first thing to do is to check your monthly bill for PCI non-compliance.
It’s a legal requirement that you are PCI compliant if you accept card payments and you can be fined for non-compliance. Most companies charge a monthly fee to ensure this is taken care of for you. However, we have seen some statements showing companies are charging a monthly fee to ensure you’re compliant AND a monthly non-compliance fine.
This will be listed on your statement and is easy to check.
2. Are Your Transaction Rates Too High?
Secondly, check your transaction rates.
If your rates are higher than 0.295% for debit card transactions and 0.65% for credit card transactions, you are being overcharged and are simply giving away your profits.
These rates will be listed on your monthly statement as well.
3. Make Sure Your Contract Doesn’t Auto-Renew!
Finally, check that your contract does not auto-renew!
We have bought customers out of contracts because they’ve unknowingly been locked into an auto-renewing contract with all the above fees and inflated charges. Check with your provider that your contract doesn’t simply auto-renew so that you have the opportunity to make sure you are on the best deal.
Long contracts aren’t an issue (provided you are happy with the rates), however, auto-renewing contracts leave you open to giving away your profit when you shouldn’t have to!
So, you don’t have to be held hostage by your card machine if you know exactly where companies sting you for charges. Check your PCI charges, transaction rates and when your contract renews. Don’t feel pressured when speaking to your supplier, either. There are a HUGE number of card payment processing companies out there and you have PLENTY of choices – you are never trapped in a contract. New suppliers will often buy you out of your current contract.
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