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Processing and Profit

By September 19, 2019September 7th, 2021No Comments

Processing and Profit

Processing and Profit: Part of business 101 is increase sales, decrease costs, on top of trying to improve customer service and retention. When looking to decrease costs, processing is an area that is often overlooked.

Termination Fees

Business owners usually met with roadblocks, contracts and/or early termination fees.

A great solution is Interchange Optimization, which automatically recognizes the most cost effective way to process a transaction, meaning the business will get the lowest rate every time, in turn saving a hefty amount.

Margin Increase

Interchange fees are the bulk of fees for processing a single transaction. Merchants know these fees exist, but most do not know how or why they are there, or how to reduce them.

Interchange rates are non-negotiable, but you can minimize cost by improving qualification rates using a cloud-based solution. There are 3 different categories to process through. Level 3 requires the merchant to enter more information. The added information helps decrease risk, which allows for processing at a lower rate to be possible.

Adding to fees set by the bank and credit card companies, as of January 27, 2013, the government allows merchants to charge customers either a convenience fee or surcharge fee for processing credit cards.

“Cash Discount” Programs

Surcharges are fees added by merchants to cover charges incurred from a credit card transaction. Convenience fees are added by merchants for allowing customers the option for their customers to pay in a way that isn’t considered standard.

It is enticing to some business owners to add surcharges or convenience fees as a way to help offset the cost. In doing so, they run a high risk for violating a number of rules since state laws are widely different. Sometimes these fees do more harm than good as far as customer retention and relationships go.

Correct Practices Save Money

With correct transaction practices there should not be a need to tack on more fees.

By automating processing businesses can reduce the risk of breach and improve security. Doing so minimizes cost, as well as giving customers peace of mind that their information is secure.

Two security practices are end-to-end encryption and tokenization. End-to-end encryption ensures that sensitive card data is protected from the card swipe until it is unencrypted on the receiving end. Tokenization is the process of scrambling the information being sent to reduce the risk of exposure.


When a business streamlines their payment experience, they will experience an increase in profit margins. Business owners who take the time to look for solutions that meets their needs they can be rewarded by an increase in sales, decrease in costs, and most importantly, customer retention. Platinum Payments helps with that. We tailor the experience to help with customer success, processing experience, and profit increase.

Find out more on how your business can increase profits.

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