Merchants are often misled when people point out accepting credit cards is just about the best thing that has ever happened to their business. They expect instant results and low cost, something that a merchant account cannot promise immediately upon getting one. The price factor is also another issue that they have to combat for most merchants wonder why the cost of accepting credit cards can be so exorbitant. They are constantly assaulted by transaction fees as high as 5%. Some businesses even revert back to a cash only policy (some offer incentives to cash-paying customers) but this is evidently not a long term solution because the business owners quickly find out that business is not as brisk as before.

Here are some tips to counter expensive credit card processing and merchant account fees;

1. Research – Do your homework
When shopping for a merchant account provider, do your research before you make your decision because this can save you truckloads of money in the long run. Granted, not all companies come with a 100% rate of satisfaction but highly risky ones should be easy to spot, based on the reviews and complaints submitted by disgruntled merchants. The bottomline is, you can never go wrong with a top notch merchant account service provider used by the larger e-Commerce outfits, so you may want to consider hiring the provider your competitor is using.

2. Compare and bargain
It is wise to compare between the merchant account providers that you like but you should remember that the cheapest is not always the best. Quality in service comes with a price, something that you should readily pay to save you money several years down the road.

3. Say no to leasing contracts
Applying for a credit card terminal lease may not be the most cost effective move you can make. There are more advanced technologies out there but if you insist on having a good old fashioned credit card terminal, you can find one off good auction sites like eBay.

4. Obtain interchange-plus pricing
The interchange-plus pricing is the lowest and most optimal transaction fee structure that you should look out for. Tiered or bucket pricing structure should be avoided at all cost because it will not benefit merchants with good credit background. Interchange-plus pricing, also known as true cost pricing structure, can save you as much as 50% transaction fees.

5. Get rid of monthly fees
You know you are getting ripped off when your payment service provider charges you $30 a month in statement fees. If some fees sound too ridiculous to be true, then they are! Ask before you sign on the dotted line, and get your provider to clarify each fee and how it works.

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