5 Ways Nashville Businesses Can Save Money on Credit Card Processing

If you’re a Nashville business owner, you’re probably paying too much for credit card processing. The good news? There are several proven strategies to reduce your costs without compromising on service or security.

1. Negotiate Your Rates

Many business owners don’t realize that processing rates are negotiable. If you’ve been with the same processor for over a year, it’s time to ask for a rate review. Here’s what to do:

• Gather your last 3 months of processing statements
• Calculate your effective rate (total fees ÷ total volume)
• Research competitive rates for your industry
• Contact your processor and ask for a rate reduction

2. Understand Your Pricing Model

There are three main pricing models in credit card processing:

Tiered Pricing: Transactions are grouped into qualified, mid-qualified, and non-qualified tiers. This model often hides the true cost of processing.

Flat Rate: You pay the same percentage for every transaction. Simple but often more expensive for high-volume businesses.

Interchange Plus: You pay the actual interchange rate plus a fixed markup. This is typically the most transparent and cost-effective model.

3. Reduce Chargebacks

Chargebacks are expensive, often costing $25-100 per incident plus the lost sale. Reduce them by:

• Using clear billing descriptors
• Providing excellent customer service
• Implementing fraud detection tools
• Requiring CVV for all transactions
• Keeping detailed transaction records

4. Optimize Your Transaction Flow

How you process transactions affects your rates:

• Always swipe, dip, or tap when possible (card-present rates are lower)
• Batch out daily to avoid higher rates
• Capture all required data (ZIP code, CVV)
• Use address verification for online transactions

5. Review and Eliminate Unnecessary Fees

Common fees you might be able to eliminate:

• PCI non-compliance fees (by staying compliant)
• Statement fees (by opting for online statements)
• Annual fees (by negotiating or switching processors)
• Equipment rental fees (by purchasing equipment)

How Process King USA Can Help

At Process King USA, we specialize in helping Nashville businesses reduce their processing costs. Our interchange-plus pricing model ensures transparency, and our local team provides the support you need to optimize your payment processing.

Ready to start saving? Contact us today for a free analysis of your current processing costs and see how much you could save.