If your business accepts credit cards, debit cards, or online payments, chances are you’re paying more than you should in fees. The truth is, a few common mistakes in how payments are handled can add up to thousands of dollars lost every year.
The good news? These mistakes are avoidable and with the right setup, you can keep more of your hard-earned revenue.
Choosing the Wrong Pricing Model
Flat-rate pricing seems simple: one standard rate for every transaction. Providers like PayPal, Square, and Shopify commonly use this model (e.g., 2.9% + 30¢ per transaction).
The problem? Flat-rate can get expensive if you process:
- A high volume of transactions
- Debit card payments (which have lower costs)
- In-person sales (lower risk = lower fees)
The fix: Consider interchange-plus pricing, where you pay the actual transaction cost (interchange + network fees) plus a small markup. This model often saves money for businesses processing $10K+/month.
Manually Keying in Cards
Manually typing in card numbers = red flag for fraud. And higher fraud risk = higher fees.
The fix: Use secure payment methods instead:
- Chip or tap payments in person
- Hosted forms online
- “Pay Now” links that let customers enter info directly
These methods reduce fraud risk and lower your processing rates.
Skipping AVS and CVV Checks
Address Verification System (AVS) and CVV checks confirm the cardholder’s details match the payment. Without them, transactions are flagged as riskier and you pay higher fees.
The fix: Turn on AVS and CVV checks from the start. You’ll lower your risk of fraud, reduce chargebacks, and often qualify for better rates.
Not Sending Level 2 or Level 3 Data
If you sell to businesses (B2B), this mistake can be very costly.
By sending additional invoice data (like tax amount, PO number, or line-item details), you qualify for Level 2 or Level 3 processing rates. That can reduce transaction fees by up to 1%—but many businesses miss out because their systems don’t support it.
The fix: If you use Salesforce, Kulturra makes it easy to send Level 2/3 data automatically with each transaction.
Sticking with the First Provider You Found
A lot of businesses simply sign up with their bank or the first provider they Google. The result? Higher fees, fewer features, and little support.
The fix: Work with a partner who helps you:
- Choose the right provider for your industry and volume
- Negotiate better rates
- Stay PCI compliant
- Scale as your needs grow
Save Money on Every Transaction with Kulturra
At Kulturra, we help Salesforce teams cut costs and simplify payments. Our Payment Center app connects directly to Salesforce, giving you:
- Lower transaction fees
- Smarter fraud prevention
- Level 2/3 data support
- Automated billing and reporting
Don’t let payment mistakes drain your bottom line. See how Kulturra can help you get paid faster, with fewer fees, and less hassle.
