How to Reduce Fees in Swipecard POS Machine Transactions

 

Introduction

Every time a customer pays using a swipecard POS machine, the shop owner pays a small fee. This is called the Merchant Discount Rate (MDR) or transaction fee. While the fee cannot be avoided fully, businesses can take steps to lower the costs.

 


Tips to Reduce POS Transaction Fees

1. Compare Providers
Different banks and payment companies charge different rates. Before choosing a swipecard POS machine, check and compare MDR, setup fees, and hidden costs.

2. Choose the Right Plan
Some providers offer fixed monthly rental plans, while others charge per transaction. Seasonal or low-volume shops may prefer pay-per-use. Busy stores may save more with a flat monthly plan.

3. Encourage Debit Card and UPI Payments
Debit card and UPI transaction fees are usually lower than credit card fees. Guiding customers to these options helps reduce costs.

4. Negotiate with Providers
If your sales volume is high, talk to your bank or POS provider. They may reduce fees or offer special discounts for large businesses.

5. Use Government Schemes
In India, small merchants sometimes get fee waivers or reduced MDR under government initiatives. Check if your business qualifies.

6. Monitor Statements
Always review your settlement reports. This helps catch hidden or extra charges that you can question with your provider.

7. Use One Provider for Multiple Services
Some companies offer lower fees if you use them for POS, online payments, and QR code payments together.

Final Thought

Running a swipecard POS machine doesn’t have to be costly. By picking the right plan, encouraging low-fee payments, and negotiating with providers, businesses can save money while still giving customers a smooth card payment experience.

FAQ

Q: Do customers ever pay the transaction fee?
A: No. The fee is always charged to the business, not the customer.

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