COVID19 and the resulting lockdown is severely impacting many small UK businesses. Pubs, restaurants, gyms, hairdressers and many other “non-essential” businesses are unable to trade and are earning no income. But that doesn’t stop their costs growing and business owners are urgently looking for ways to reduce those costs to stay in business for when the lockdown ends and business can begin again.
Small business owners are more pressured than ever to keep their operating costs as low as possible especially with all the major changes in the economy brought on by COVID-19.
While fixed costs may feel non-negotiable, you can reduce your business’s card processing fees.
Let me share some of the things you can do to lower these costs.
Low-Cost Website Order Solutions
Reacting to the Covid-19 outbreak and government legislation, we have helped businesses create a new ordering online system to give them the ability to take online orders. Companies with the greatest online presence suffer less from the impact of lockdown. It is no longer a real option only to provide POS offers. Many restaurants prohibited from having inside dining have turned to offering takeaways and this has been made lucrative for them by having their own websites with a takeaway ordering system. Once lockdown is over they will then have the best of both worlds.
Switching merchant service providers
We have helped multiple businesses switch their merchant services accounts in order to save money. Too many companies have been charged full whack on their terminals and charged minimum monthly fees because they are not trading. We have helped them move to a provider who charges them nothing while closed, and much lower rates with no hidden charges when they reopen.
Sorting out PCI compliance
Despite being closed many businesses have found they’re being charged PCI non-compliance fines. We have assisted them in getting compliant. It is worth checking your statements to check whether you are being charged non compliance fines which can cost £25 or more. If you are take the time, or get help to get yourself compliant.
Taking Payments over the phone
MOTO is a term used in card processing to describe transactions that take place when the customer is not present. It stands for mail order/telephone order. By definition, MOTO payments allow transactions to take place by manually keying in card details to your card terminal. This comes at a surcharge and leaves businesses at risk as these transactions are non-secured. We have helped businesses set up a MOTO virtual terminal which secures these transactions and reduces the charges incurred.
Getting your chip and pin machine rental lowered
We have worked on behalf of many clients going to their chip and pin provider and organised to reduce their monthly terminal rental either by way of a payment holiday or a peppercorn rental where they’re only paying a minimal amount (of 5% of the monthly rental) during enforced closure. It is worth getting on the phone to your provider and asking for this.
Cutting down on Chargebacks
A significant increase in refund and chargeback levels, spurred by the coronavirus, for events, and trips have happened. Merchants are overwhelmed by disputes and cancellations. Customers demand to refund money for travel and accommodation. To avoid chargebacks, we have supported retailers by showing them a better option which is to offer them a solution including vouchers for later redemption or credits. The conditions for any solution should be communicated very clearly, not only to the customer, but also to the partners involved, such as travel agencies, hotels, agencies, etc. This way, high chargeback levels can be avoided.
Helping businesses take card payments for the 1st time
Some payment methods are also likely to suffer more than others. Customers are increasingly skeptical of traditional paper currency as a result of the health risk it carries, and its use may not rebound when lockdowns end. Despite attempts to sterilize cash (using ultraviolet rays, ozone, or heat treatments, for example), the use of cash and other paper payment methods is declining. We understand from most of our discussions that cash withdrawals at ATMs are down dramatically—by more than 50 percent—in many European countries. Contactless payments, on the other hand, are rising strongly, despite the overall contraction, as the perceived hygienic security is higher than it is for normal POS payments. We have helped many essential businesses who have never before taken card payments to set up chip and pin machines and merchant gateways for their websites. We make sure they choose a bank who doesn’t end up charging some of the crazy unnecessary hidden fees that some do.
There are many merchant service providers out there. The level of support available does vary wildly across the industry and it may not be obvious what specific support your provider is willing to provide.
Many providers are only providing support to those merchants who contact them requesting support. So the lesson is even if your provider is being coy about what support is on offer, it is worthwhile getting in touch with them to discuss your own circumstances. Every penny counts in these difficult times and unfortunately it may be a case of if you don’t ask, you don’t get.
Let me help you!
Alternatively get in contact with me and I’m here to help. Everything starts with personal conversations and an individual, tailored approach. It is important to find the right solution for you and that would start by getting in contact with me. The main role of a merchant broker is to provide a vital link between your business and the banks. We can help provide the best and most cost-effective solution for you and your business. Every business is different.
There’s no one-size-fits-all options here.
I’m here for you.
SMEEHEE HELPING YOU THROUGH THE BUSINESS IMPACT OF CORONAVIRUS
Recent Comments