How to save on credit card fees

It's all about optimizing your interchange fee.

Interchange fees are a schedule of fees paid by merchants for the convenience of accepting credit or debit cards. They are a key component of the payment card ecosystem and play a major role in both facilitating and making electronic payment transactions possible.

These fees are set by the card associations, Visa, Mastercard, American Express, and Discover. The merchant acquirer assesses them; this is the acquiring bank and the financial institution that enables a business to accept credit and debit card payments from customers. These fees are then passed on to the company itself. They generally represent the single largest expense in the card transaction process.

Waste management companies are charged a lower interchange rate.

Interchange fees differ depending on the industry or merchant category in which a business operates. This has significant ramifications for those engaged in waste management. More specifically, it means you can save a whole lot of money in transaction fees. Waste management companies that offer curbside pick up are defined as utilities, and utilities pay a much lower interchange rate than other industry categories.

From a processing perspective, utility payments are considered low risk, and the interchange rate reflects that level of risk. People pay their utility bills for the simple reason that utilities are necessary for living. As such, customers are more likely to prioritize these payments.

No one wants to be without electricity or water, and no one wants garbage piling up. So people tend to make these payments on time and with no fuss. Hence, chargebacks and payment disputes are relatively rare in the utility payments sector. If a customer has a concern, she is more likely to resolve the billing issue directly with her provider.

Waste not, want not, putting utility interchange rates to work for you.

Your business must be approved for a utilities merchant account to qualify for the utility interchange rate. Setting up a utility merchant account requires that your business be classified with the correct Merchant Category Code (MCC) and that your company be registered with Visa and have what Visa considers a valid Merchant Verification Value (MVV).

Various types of businesses are recognized as part of the waste removal industry and thereby qualify for the utilities interchange rate. They include residential waste, disposal companies, and business waste services.

There's wealth in waste, but only if you closely watch your bottom line.

If you are like most waste management companies, you process a high volume of credit card transactions, meaning interchange fees make up a substantial part of your processing expenses. Optimizing your interchange rate can substantially lower your overall processing costs, but doing so requires having the right credit card processor.

Having the right credit card processor will ensure that your transactions meet all the requirements for the lowest interchange rate. This includes providing the correct industry classification and submitting any and all other data necessary to automatically qualify for the optimal interchange rate. Your bottom line will thank you.

Come clean, are you sure you're getting the best possible interchange rate?

The first step in ensuring you're getting the best possible interchange rate is analyzing your current fees thoroughly. Taking Qualpay’s Savings Challenge, you can optimize your interchange fees. Just upload one of your latest statements, and we will create a custom audit of your interchange charges to see whether you are paying more than you have to.

We're open to a little trash talk.

At Qualpay, we are committed to helping waste management businesses optimize every dollar and reduce the cost of processing credit card payments. Whether you're a neighborhood hauler or a regional powerhouse, we can help you take advantage of all the savings benefits that are available to you, including accessing the optimal interchange rate for which you qualify. So contact us today.

About Qualpay

Qualpay is a fully-integrated payments platform that leverages the most up-to-date technology to reduce costs and streamline cash flow. With years of developing payment processing and reporting solutions, Qualpay offers the tools and integrations to deliver the insights you need to streamline the payment experience. Our expertise in real-time reconciliation reporting available anywhere and a boutique approach to integration ensures each of our clients receives the exact analytics they need. Qualpay's reporting intelligence and data analytics allow customers to quickly and efficiently manage their payment finances, saving them both time and money.

Lowering credit card processing expenses for your waste management business goes beyond just securing a better rate, it requires partnering with a provider who truly understands your business and uses every resource to minimize your payment costs. Whether you’re an independent hauler or a large-scale waste management operation, Qualpay is committed to helping you achieve significant savings and strengthen your cash flow management.