You know what’s the worst? When you do the work and then have to wait foooreeevveer to get paid. Or when you see how much credit card and online processing fees are costing you. Do you ever look at those?
The average fee with credit card payments is close to 3%, which doesn’t sound like a lot at first glance, but on large transactions and over the course of a few months or years, it really adds up.
Here are some ideas on how to save on those fees and get paid faster:
Quickbooks Online lets people pay you using a bank transfer (ACH) and the fee for that is $0 per transaction. That’s right, zero. They also let you send your invoices by email, so people get them faster and then they can click a button to pay you electronically too. Plus you can track when people receive and view the invoices and send reminders, so it is basically awesome. You get your money in a couple of days, without having to wait for a check in the mail. This is the way I receive payments from my clients and I love it.
You can also do a direct bank to bank transfers via ACH. Check with your bank to see if they charge a fee to do this. If they charge a fee, ask if they will waive it. Banks are surprisingly generous with waiving fees if you ask.
I personally haven’t used Wave, but they allow free invoicing and a direct bank-to-bank transfer for 1% vs the higher credit card processing fee.
Ultimately, you should check into how you are processing your payments. There are times when this fee is unavoidable and you just have to accept it as a part of doing business. But for more of your transactions, is there a better, lower cost option? It might not seem like a lot now, but it definitely adds up and if you want to increase your profits, try to find savings wherever you can.