Running a company requires business owners to open a bank account so they can easily manage their financial assets. Unfortunately, there are costs associated with having a bank account; if left unchecked, expenses may spiral out of control. While you can’t entirely ditch banking fees, you must still aim to reduce them so you can invest in other ventures.
As an entrepreneur, your main priority is to meet the demands of your customers while saving costs. However, banking fees may arise from bank teller services, cash lodgments, and interest on loans. Fortunately, you can still find ways to save on banking expenses while striving to sustain the satisfaction of your consumers.
In this feature, you’ll learn five surefire strategies for reducing bank transaction fees for your organization.
Table of Contents
1. Practice Good Recordkeeping And Documents Collection
Reducing transaction fees requires you to keep statements and other files relating to the operation of your account. In addition, this strategy prevents you from receiving charges for duplicate copies. Otherwise, you’ll have to pay for additional costs if you’re missing original statements you thought you wouldn’t need.
For instance, after computing your return on investment (ROI) with a simple ROI calculator, you must keep it in a secure location. Also, you have to keep your bank statements intact because this component is an essential part of bookkeeping. Doing so saves you from making special orders for older statements and paying extra fees for them.
2. Leverage Online Banking
With traditional banking methods, you won’t be able to check the balance of your company account in real-time. Meaning you don’t have the ability to view your current balance and evaluate the accuracy of recent transactions. With that, you couldn’t easily spot fraud and you’ll have to wait for a later date for your statement to arrive in the mail.
Most modern companies are already using online banking to ensure safer and faster transactions. That said, you must consider switching to digital banking if you still use the traditional method. As a result, this strategy enables you to save time and effort on bank visits, which saves banking costs.
Additionally, leveraging online banking keeps you up to date on your account details as you view balances and transactions. More so, this modern banking method allows you to make immediate payments to your partners that’ll motivate them to trust your company. Furthermore, you can pay salaries as you create a single transaction that can produce several payments at once.
3. Reduce The Frequency Of Your Transactions
Most banks charge their clients per transaction, which means that you’ll have to overpay every time you check your balance. That said, you must consider limiting your monthly transactions so you can ensure cheaper bank fees. Plus, you should avoid costly transactions such as international cheque deposits.
Reducing your business transactions is about disabling mobile terminals that might encourage unnecessary fees. Instead, you must turn your mobile device into a point of sales (POS) tool with the help of an app. All your clients need to do is to scan a unique pay code with their phones, choose a product or service, and instantly pay.
From your company’s side, you may set up a category of products and services on your dashboard. Then, you’ll receive purchase notifications in real-time, which allows your team to quickly process the order. Once the transaction is over, you’ll receive the money in your account right after the clients pay.
4. Avoid Credit Cards
If you accept digital payments, your app is likely to enable credit card users to have a transaction with you. Nevertheless, these card payments are costly so you’ll have to look at alternative options. You may speak to your existing payment processor and try negotiating lower rates.
Another way to avoid credit card payments is by switching to a more affordable credit card processor. Before selecting a provider, you’ll have to evaluate their chargeback, terminal rental, dispute, and general maintenance fees. Alternatively, you may set a minimum payment for credit card transactions to reduce common transaction charges.
5. Find A Good Business Bank Account
While existing accounts are usually free, most leading banks charge fees for corporate banking. With that, you’ll have to pay for high monthly membership and transaction fees that might hurt your finances. Fortunately, you won’t have to pay anything at all if you use challenger banks, which eliminates banking fees.
Some global companies offer a multi-currency account that enables your international company to send and receive money. Thus, you may accept financial transactions in different denominations, from the United States Dollar (USD) to the Japanese Yen (JPY), with zero costs. Further, a good business bank account may provide you with debit cards, overdraft, and accounting software integration.
Key Takeaway
As a business owner, you should find ways to reduce banking transaction fees so you can allocate your budget to other resources. It’s recommended that you consider following the five strategies mentioned above to ensure the effectiveness of your financing goals. As a result, you won’t have to pay for expensive banking costs while you make and receive payments from your clients.
