Lower monthly credit card processing bills and Chargebacks

business processing credit cards

An easy way to lower your retail store’s credit card processing bill is to reduce keyed transactions.  Sounds simple but will make a huge difference.

By allowing your employees to key in the credit card information into your terminal you are making the system prone to human error.

Keyed Credit Card Transaction

When a CC reader is malfunctioning and the card isn’t reading properly, an employee may manually enter the numbers.    Except very often it’s exactly what fraudsters want and a stolen CC may just pass through.

So what should I do?
  • Train your employees to take an imprint of the Credit Card and have it signed & dated
  • Keep your register and CC terminal clean and functioning. Do not allow food/drinks near it
  • Train employees to swipe properly, do not allow swiping in different directions under different angles. It damages the machine
  • When Credit Card’s magnetic stripe can’t be read, instruct employees to pay extra attention to the customer.  Request a driver’s license, don’t forget to obtain a signature and a date.
Why this is important!

When a credit card is not being read by the CC terminal, probability of Chargebacks goes up exponentially.  If you don’t have a signed imprint of customer’s CC, it becomes impossible to fight Chargebacks.  And, as we mentioned previously, simple fact that something is wrong with the card increases chances that the Credit Card is fraudulent.

Credit card processors charge higher rates for keyed versus swiped credit card transactions.  These fees definitely add up at the end of the month.  Make sure you analyze your Credit Card statement regularly to see if there is a correlation between specific terminals or employees.  You should correct it immediately if you find more than 1% keyed transaction rate.

Keyed transaction definitely occur from time to time, just don’t let them become the norm.