How to Reduce Payment Processing Fees on Your Campground POS

Jun 19th, 2024

ACHPayment ProcessingAscentPayGeneral

Payment processing is a reality of any business, and many campground and RV resort businesses look at the fees associated with payment processing and assume they’re unavoidable. While that may be true to a point, you may be paying more than you have to – which impacts your bottom line.

When it comes to payment processing fees your campground accumulates at the point of sale, there are quite a few strategies you can use to reduce or even eliminate your fees. Let’s dive in!

 

Implement Compliant Surcharging

Payment processing fees from your campground POS can be one of the biggest monthly expenses of a rental business. Debit cards and ACH transactions may not be so bad, but credit card fees are especially costly. 

There are several ways to offset or reduce processing fees, such as a convenience fee, cash discount, or compliant surcharge. You can only implement one of these methods, so it’s important to choose with care.

Since credit card processing fees tend to be the highest, we generally recommend surcharging. This passes the cost of the credit card usage on to the guest instead of being absorbed by your campground.

With this option, customers have the option to avoid the surcharge entirely by paying with a low-fee option like a debit card, ACH, or echeck. For all of these options, there is no surcharge fee for them and a lower processing charge for your campground – a win-win situation for everyone. This gives guests the freedom to choose their payment method without adding high processing fees to your business. 

However, make sure that your surcharge solution is 100% compliant. If you start charging a fee for certain credit cards without following compliance guidelines, you could be on the hook for some serious fines of up to $10,000 daily! 

AscentZeroCost is a compliant surcharge solution that helps you avoid penalties while keeping more money in your pocket.

 

Look for Interchange Pricing

Another way that you can reduce your payment processing fees is via interchange pricing (also known as cost-plus pricing). This is a transparent pricing model where merchants pay the actual interchange fees set by card networks plus a fixed markup by the payment processor.

In other words, interchange pricing allows merchants to see the real cost of each credit and debit card transaction. Instead of pricing according to a tier, they are bundled out separately which is a money-saving move. 

What is the benefit of interchange pricing? 

Most notably, it’s significantly harder to have hidden fees with interchange plus pricing. As the merchant, you can see an itemized breakdown of bank fees, card fees, and so on. Everything is listed out for you to review at the end of the month, quarter, or even year. 

You may be charged a small fee for this service, but you know exactly what it will cost you without hidden surprises that eat into your profit later on. Everything is clear and transparent which you will ultimately appreciate when doing the bookkeeping and monitoring profit. 

 

Ask About Net Billing

Unfortunately, refunds and credits are a normal part of business. The problem is that you’ve already paid the fees on these transactions, so you’re immediately in the red on a booking that isn’t going to happen. 

Many processors will keep that fee for themselves. Some may even charge you another fee just to process the refund. 

With net billing, those fees will be returned to you.

When you have decisions to make about your campground POS, it’s important to ask about net billing and reimbursement for processing fees on refunds and credits. While not every card brand will offer to return the interchange fee, you should know what exactly happens to that money if they do. 

With Ascent, if the processing bank refunds fees on returns, we credit them back to your account. After all, you no longer have a booking so why should it cost you more money for a vacancy? 

 

Switch Payment Processors

Who is the Merchant of Record (MOR) – you or your payment processor? Some options like Stripe are the MOR and thus have increased control over your finances. 

If your processor is the MOR, you may not even be able to do anything we’ve just talked about. Compliant surcharging, interchange pricing, and net billing will all be limited by your processor’s policies or platform. You may be paying higher fees and locked into poor rates – and there’s nothing you can do to change that.

By switching to a payment processor where you are the MOR, you’ll get far more control and flexibility over your payments and finances. While being the MOR requires more bookkeeping on your part, it’s absolutely necessary if you want to scale your rental business. 

When you shop around, keep in mind that not all processors are created equal. Find a payment processor for campgrounds, RV resort rentals, and RV rentals so you know they’ll be able to handle the needs of your business. 

 Some processors may also charge fees that others don’t, including application fees, setup fees, and even termination fees. Ask for a breakdown of costs upfront before you make a switch.

 

Ascent: Your Destination for Payment Solutions

Processing fees may be an unavoidable reality of doing business, but these fees don’t need to cut deep into your profit margins. A dollar saved is a dollar earned, and these strategies to reduce payment processing fees on your campground POS can make a real impact on your business! 

Designed with campgrounds and RV resorts in mind, Ascent can lower your POS processing fees with interchange pricing, net billing, compliant surcharging, and so much more. Get the best rates and say goodbye to hidden fees – we’re here to help your business grow!

Ready to learn more? Reach out today to discover how Ascent’s money-saving solutions and support can benefit your business.