Small business owners know that in order to compete into today’s business market, you have to accept credit cards. Americans are dependent upon their debit and credit cards to pay for purchases wherever they go. However, the biggest challenge that many business owners face, especially small businesses, is that accepting credit cards means paying interchange fees to the credit card companies for the privilege of accepting credit cards.

Interchange fees are the charges businesses pay to credit card processors for the payments they receive that are paid by credit card. In the past few years these interchange fees have increased into more than a $48 billion dollar industry. This means that businesses are paying more and more for allowing their customers to pay with credit and debit cards, and as a result, more and more businesses are looking for ways to save money on interchange fees.

The gas station is a prime example of how interchange fees are driving business profits down. Gas station owners are required to pay a fee on every gallon of gas a customer charges on their debit or credit card. This means that the fees of a busy gas station can be exorbitant. Many smaller gas stations simply cannot afford to pay the interchange fees anymore. These stations have to consider whether they will continue to accept credit cards or take the chance of losing customers because they do not accept credit cards.

One thing that is being offered that can offset the costs of high interchange fees is Interchange Plus. Interchange Plus was previously offered only to large businesses; however, it is now being offered to smaller businesses as well. The pricing scale is straightforward, unlike the tier-based pricing structure that is most commonly used. Many businesses save thousands of dollars on interchange fees annually by signing up for the Interchange Plus program.

Businesses should also ensure that they understand the terms and conditions of their credit card contracts. Many times there are hidden fees that you need to be aware of such as those associated with unauthorized charges. Understanding the terms of your contract can save you lots of money so make sure you ask questions before agreeing to the contract.

Finally, make sure you contract with a company that provides excellent customer service. Should you have a problem or have unauthorized charges you need to discuss, a company that you can talk to and get issues worked out with quickly can save you time and money, which is important to every business owner.