If you’ve recently completed your tax filing for 2024, you might have experienced an unwelcome surprise: the total amount you paid in payment processing fees last year. For many small business owners, these fees represent thousands of dollars that could have been reinvested in growth, used for new equipment, or simply added to your bottom line.
While you may be trying to provide the digital payment experience your customers expect, you don’t have to accept high processing fees as just another unavoidable cost of doing business. Here are practical ways to reduce your processing costs while still offering convenient digital payment options to your customers.
Smart Ways to Accept Online Payments With Lower Fees
Focus on ACH Payments
The most effective way to drastically reduce online payment fees is to prioritize ACH (direct bank transfers) whenever possible. While credit card processors typically charge 2.9-3.5% per transaction, ACH payments often cost a fraction of that or even nothing at all with certain providers. For service businesses with recurring clients, encouraging ACH payments can save thousands annually.
Educate Your Customers
Many customers don’t realize that their payment method affects your bottom line. A simple explanation during checkout or on invoices can encourage them to choose payment methods that cost you less. Most people are happy to help a small business they value if they understand the impact.
Choose the Right Payment Processor
Not all online payment processors are created equal when it comes to fees. Some providers specialize in specific industries or transaction types and offer more competitive rates for those scenarios. Taking time to research options specifically designed for your business model can yield significant savings.
How Standard Processing Fees Drain Your Business Profits
Standard online payment processing fees of 2.9% plus $0.30 per transaction may not seem substantial on individual sales, but they add up quickly:
- A business processing $5,000 monthly in online payments pays approximately $1,750 annually in fees
- At $10,000 monthly, that jumps to over $3,500 per year
- For $25,000 monthly volume, you’re losing more than $8,750 to processing fees
These calculations demonstrate why finding a lower-cost online payment solution represents one of the simplest ways to improve your business profitability.
Save on Transaction Costs
At Finli, we don’t charge any transaction fees for ACH payments. Our digital payment system lets your customers pay via ACH, credit card, or Apple Pay. While ACH payments are always free, we do charge a standard 3% processing fee for credit card transactions. We give you the flexibility to either cover these costs yourself or pass them on to your customers.
For businesses with recurring payments or invoices where customers don’t need to use credit cards, the savings opportunity is substantial. Instead of watching 3% of your revenue disappear into processing fees, you keep the full amount of every payment made through ACH.
Calculate Your Potential Savings
How much could your business save by switching to a zero-fee payment solution? The difference might be more significant than you realize.
How much can you save with Finli?
Finli offers an easy-to-use calculator on their website that lets you compare your potential savings against what you’re currently paying with services like Square or Venmo. Take a moment to run your numbers through this calculator to see your personalized savings estimate.
For example, a service business processing $30,000 monthly through Square would pay approximately $10,440 in processing fees annually. Switching to Finli’s 0% ACH processing could potentially save the entire amount, depending on how many customers switch to ACH payments.
Real Business Owners, Real Savings
The impact of eliminating processing fees goes beyond theoretical calculations. Small business owners across industries are experiencing tangible benefits after making the switch.
“I switched from Square to Finli during the pandemic. It does more for me as a business. I am able to integrate customer profiles, invoicing, and payment processing all in one.” Danica V. Dance Studio Owner.
For small business owners, every dollar saved goes right back into the business. By eliminating payment processing fees, owners like Danica can keep more of what they earn while enjoying a simpler way to manage customer payments.
Beyond Fee Savings: Additional Benefits
While reduced processing fees provide the most obvious financial benefit, platforms like Finli offer additional advantages specifically designed for service-based businesses:
- Integrated customer management – Maintain customer profiles, communication history, and payment preferences in one system
- Professional invoicing – Create and send branded invoices that reflect your business identity
- Recurring payment automation – Set up subscription billing for memberships, lessons, or other regular services
- Multiple payment options – Give customers flexibility while steering them toward options that save you money
- Simplified accounting – Reduce reconciliation time with comprehensive payment reports
These features address common pain points for service businesses beyond just payment processing.
Making the Switch: Practical Considerations
Transitioning to a new payment platform requires some planning, but the process can be surprisingly straightforward when approached systematically:
- Calculate your current costs – Review your statements to understand exactly what you’re paying now
- Evaluate your specific needs – Consider which features are essential for your business model
- Plan customer communication – Prepare to explain the new payment options to customers
- Consider timing – Choose a transition period when business volume is lower
- Request a demonstration – See exactly how the new system works before committing
Most businesses find that the adjustment period is brief, especially when the new platform offers an improved experience for both the business and its customers.
Takeaways
Payment processing fees represent one of the most unnecessary drains on small business profitability. By exploring options like Finli that offer 0% ACH processing, you can potentially save thousands of dollars annually while gaining access to tools specifically designed for service-based businesses.
Take a moment to calculate your potential savings using Finli’s online calculators. The results might just transform how you think about payment processing – and more importantly, keep more money in your business where it belongs.
