Digital payments are here to stay. People enjoy the convenience and efficiency of paying with a credit card. Providing multiple payment methods can improve the customer experience, but the business does not have to suffer.
By Ben Ross

When the pandemic began, almost every aspect of life became digital. People began to work from their living rooms, doctors conducted appointments via video chat and social hangouts, happened over FaceTime. Fortunately, digital technology prevented disconnection and provided convenience for many businesses and their customers. If they were not doing it already, many people started to rely on digital payment methods, allowing them to stay home and pay their bills safely and securely.
Nowadays, most customers pay their bills with a credit card for convenience, especially to take advantage of pre-scheduled auto payments. For any business, credit card processing fees can greatly impact profit. Unfortunately, credit card processing fees for a waste management company are often exorbitant due to bigger orders and, in turn, larger costs.

A Utility Merchant Account
Many waste management companies are unaware that they do not have to be stuck with such excessive fees. Some credit card companies such as Visa, MasterCard, and Discover offer lower interchange rates to waste management and utility companies. A utility merchant account is a type of bank account that allows utility companies to process electronic payments such as debit and credit cards. Through this account, businesses can receive utility interchange rates that help reduce their monthly credit card processing fees by up to 70 percent.

To set up a utility merchant account the business in question needs to classify with the correct merchant category code (MCC), a four-digit code assigned by credit card companies to identify the services provided by the business. The primary benefit of a utility merchant account is that the company pays a flat transaction fee on the credit card payments they process, as opposed to a percentage discount rate.

So, if it is that simple, why do many waste management companies not take advantage of utility interchange rates? The reality is that many businesses are not adequately educated on the process and might not be boarded correctly by the merchant account
provider. Even the smallest mistakes during setup can lead to higher credit card processing fees. For example, if a business uses the wrong MCC, it will not receive the full benefits of the utility interchange rates; they are essentially giving away free money.

Partnering with a Payment Processing Company
A payment processing company can be incredibly helpful for waste management companies who want to make sure they are not missing out on millions—money that can be put back into the business for new hires, updated equipment, and more. A payment processing company can help utility and waste management companies maximize their savings by ensuring a complete and proper setup. The process starts with discussing the company’s business needs and the types of transactions it processes daily, allowing the payment processing company to identify the correct MCC code. From there, they can help set up a company’s merchant account and confirm they are receiving the best transaction rate possible. With a payment processing company, waste management companies can lower their transaction rates by up to three percent.

The reality is digital payments are here to stay. People enjoy the convenience and efficiency of paying with a credit card. Providing multiple payment methods can improve the customer experience, but the business does not have to suffer. | WA

Ben Ross is Chief Operating Officer for Green Payments. With an extensive background across all consumer-facing industries and a passion for innovation, Ben is a skilled professional in establishing merchant relationships. As COO of Green Payments, Ben uses his expertise and dedication to the mission of empowering merchants of all sizes to achieve financial freedom through minimizing fees within an already turbulent, make-or-break market. Over the past several years, Ben has helped nearly 200 merchants per month navigate the complexities of digital payment acceptance and reclaim their financial stability while tripling the company’s revenue, generating more than $1 billion in consumer payments each year. For more information, visit greenpayments.io.

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