There are always lots of costs for various things when you run a business. Some of these can seem hidden because you don’t think about them. However, it’s essential to take them into account when you’re working out how much to charge for your products or services. Some of these costs are the charges you incur when sending or receiving money.
When someone purchases one of my courses, I pay a % of the price to my payment processors. If you use a platform to help you sell, you often pay them a fee as well. Unfortunately, this amount can be quite large compared to the sales price, and unfortunately, this is something most customers forget. So when you don’t have a business yourself, keep in mind that most small businesses have a lot of costs after the sale – it’s not all for them personally – something people often think. That’s why I wrote the Real Costs of Running A Successful Blog and Business.
I have one whole lesson in $5k in 21-days where I discuss the various options of payment processors, automated product delivery, and all things like that that are important if you want to set up an online (automated) business! {Enroll here}
You might be charged when someone makes a credit card payment to your business. Or you may have to pay when someone pays you through a service like PayPal. If you want to reduce these fees, there are lots of tactics you can consider.
| Use the Right Payment Processor |
The first thing you may want to do is find the best payment processor. You might not have one yet, which gives you the flexibility to discover the best one for your business. There are several ways you might approach the search. Some merchant services give you free equipment, and you only have to pay their fees. Others will lease or sell you the equipment you need. Make sure you compare the charge rates for each transaction and other fees you might have to pay. Some will charge more than others, so you might be able to find some great savings. It’s definitely worth some research!
| Have a Minimum Card Amount |
You might be worried about providing a card service for your business. For small payments, the charge could end up leaving you with little. One option is to impose a minimum amount for customers to pay by card. You need to think carefully about whether this is a good option. Some customers may not like the minimum charge. However, it could also encourage people to spend more so they can meet the minimum amount. You need to carefully weigh the pros and cons to decide if it’s the best choice.
| Save on International Payments |
It’s hard to avoid charges or losing money when transferring money internationally. Banks and transfer services often charge high fees. You might also have to carefully consider the exchange rates. If you’re transferring money internationally, you should compare the options available to you. You might want to consider a service such as Transferwise, which will match you up with someone sending money in the other direction. This helps you to save on fees so the transfer isn’t as expensive. Sometimes it’s also a good idea to wait until the exchange rate is healthier too.
| Opt for Direct Bank Transfers |
Many businesses use services such as PayPal to receive payments from clients. However, the fees can mean that you pay a lot of money to receive your income. It is often better to consider direct bank transfers if you’re able to. It can mean lower fees or even no fees at all. Of course, it does mean trusting people with your bank details. But much of the time this won’t be a problem if you’re working with a trusted client.
Make sure you’re not paying too much in fees to send and receive money. You could save a lot by examining your options.