As a bar owner, you probably want to make sure that your customers can pay with credit cards. How much does it cost to accept credit cards? There are many fees associated with accepting credit cards. If you’re not careful, these fees could end up costing more than what the customer spent at your establishment. In this blog post, we’ll talk about how much it costs to accept credit cards and how SipScience helps you reduce these costs.
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How much does it cost to accept credit cards and how to reduce these costs
It costs the credit card issuer (the credit union or bank) more than $200 per year to issue each credit card. This includes customer service, fraud prevention, and building/maintaining the credit score system that gives customers a FICO score. For merchants like you who accept these cards as payment, there is a cost associated with each credit card transaction. These fees range from 0.15% to over 2% and even 4% of the total purchase amount, depending on how much you charge and what type of credit card your customer is using (Visa or MasterCard), and the POS System that you are using.
Compare the rates from different credit card processing providers
One way to reduce credit card processing fees is by choosing the right credit card processor. You can compare credit card processors so that you’ll be able to see what each credit card processing company charges or how much they charge in hidden credit card fees, like PCI compliance, statement fees, and minimum monthly fees. This page shows you a comparison of credit card processors side by side. That will help you see which credit card processor offers the lowest credit card rates or hidden credit fees. Also, make sure that your POS is compatible with this payment processor.
Offer discounts for people who pay with cash or debit cards
Another way to reduce credit card processing fees is by encouraging your customers to pay with cash or debit cards. This helps you save money because credit card processors charge a higher fee for credit card transactions than they do for a debit transaction, and the rates are usually lower on cash transactions as well.
Consider an POS system that lets you take credit cards at a reduced cost
You can save credit card processing fees by choosing an all-inclusive POS system. These systems are more expensive upfront, but they let you accept credit cards with reduced credit card processing fees because they include payment gateway, credit/debit card reader, and cash register software in the price. This way you only have to pay one bill.
Integrate your POS with SipScience
You can also completely save credit card processing fees by using SipScience, which automatically integrates into your POS system. This way, not only will you not be charged credit card fees, but you let your customer be in charge of closing their tab when they are ready to go. This will free a table faster for your next customers.
What happens if my customer leaves without closing their tab? There is no need to be concerned since our automated location detection function will spot that they are not at your venue anymore. If that happens, it will immediately close their tab. If all else fails, you have the option to close their tab manually from your merchant account as a last resort.