How to reduce online payment gateway fees

There are several ways that merchants can reduce the costs associated with online payment transactions:

Compare rates of different providers:

Not all acquiring banks and payment gateways charge the same rates for online transactions. It’s important for merchants to shop around and compare rates from different providers to find the best deal. Read here how to choose a payment gateway

Use a local Payment gateway:

Using a local payment gateway service can help reduce costs as they often have lower costs associated with their operations than international players, especially if the business is mostly targeting the local market. It makes little sense for merchants in the UAE or Saudi Arabia for example to be using US or UK based payment gateways for accepting payments from their respective countries.

Utilize local payment methods:

payment gateways offer several payment methods, however not all are created equal in terms of fees. Local debit networks such as Mada in Saudi Arabia or Knet in Kuwait is significantly cheaper than using Visa and Mastercard, thus merchants should add such methods to reduce the costs charged by the gateways.

Implement fraud prevention measures:

Implementing fraud prevention measures such as Address Verification System (AVS), Card Verification Value (CVV) or 3-D Secure can help reduce the risk of fraud, which can lead to lower costs associated with chargebacks. This can be done through using only a regulated and reliable payment gateway.

Increase volume:

One of the key ways to reduce payment gateway fees is to increase the volume processed online, as the merchant can negotiate lower rates with the acquiring bank and payment gateway as the sales grow.

Keep chargebacks in check:

Chargebacks are costly for merchants, as they not only result in lost revenue but also incur additional fees. Keeping chargebacks in check by providing excellent customer service, providing detailed receipts and tracking information, and being able to quickly and effectively dispute chargebacks can help reduce costs.

It’s worth noting that these are general suggestions and the actual costs and savings will depend on the specific circumstances of each merchant. It is also important to comply with the regulations and guidelines of the country and payment networks the merchant is operating in.

Get in touch with Paymennt.com to learn more about online payment and how our lower fees and customer support can help reduce your costs of processing online payment and grow your business.