Outside of Convenience Fees, How Else Can I Lower My Payment Expenses?

FPN recognizes that the cost of doing business continues to rise. Our payment processing programs are designed to provide the lowest possible cost of doing business. There are ways to lower your cost by utilizing the full breadth and depth of solutions we offer. Below are some of our recommendations.


Emphasize Debit

  • The first recommendation is to plant the seed that the preferred method of payment is via debit or check.
  • By suggesting that you prefer debit cards, you are letting the cardholder politely know that this is the lower cost of doing business for you. Your debit card cost typically are 1.65% or less. In fact, close to 70% of your debit transactions should be under 1.00% under the Interchange Plus pricing program.
  • Even if the debit card is inserted, swiped or keyed, the debit rate remains the same. When keyed in, you do incur an additional fee for not having AVS, CVV2 match, plus a $.10 transaction fee.


Consider ACH

  • ACH costs 0.29% + $0.29 per transaction and $10.00 a month. It is a very, very low-cost alternative to credit and debit transactions.
  • ACH is simply collecting the routing and account number (rather than the card number, expiration date and CVV2) for the bank account and processing it on the FPN gateway just like you would a credit card.
  • The transaction is processed and takes fives days to clear. Plus, you no longer need to run to the bank to deposit the check. How many times are checks sitting with your employees for three to five days, or worse, lost or no longer valid?


Set-up Recurring Payments for ACH and Debit
Your Own Buy Now Pay Later Program

  • When using ACH and debit, the money is coming out of the person’s bank account. For some people, they may not have the money to make the entire payment from their bank account.
  • We are seeing franchisees take our advice and break up payments into two or three payment dates. For jobs that take seven days or more, this program has been particularly successful. Payments are spread out over two or three instances where the buyer can ensure the funds are in the account.
  • We are seeing a service fee introduced to the transaction in the industry.
    • Example: A two-payment plan will cost $25.00. A three-payment plan will cost $35.00. The fee is added to the first payment.
  • Not only can recurring payments be more palatable for consumers, they can contribute a boost to the customer experience while helping you more rapidly complete your open invoices.


Another way to offset card costs is to split the type of payment between debit, ACH and cards. Companies are asking that the first payment be made by debit or ACH and all future payments can be made by card. At a time when every dollar adds up, it is time to get creative, positioning your lower cost of doing business as the preferred method. Work with cardholders to help your bottom line.


Have questions on payment strategies specific to your business? Contact FPN today!