If you own a small business  then you are familiar with the fees you have to pay on debit and credit card transactions. At a two to four percent on every transaction, the fees can cost you hundreds , especially if you are trying to keep prices low to compete. Here are some ways you can save.

1. 1.     Your iPhone

There’s an App for that. Multiple ones, in fact. Several companies can now provide credit and debit card processing over your iPhone or other smart phone. Some evenoffer a card reader you can attach to your phone. The best part ismany of the applications wont much and there is no connection fee because  it utilizes  your mobile data connection to process the transaction.

While it sounds cool  and could be a solution for some, you have to ask yourself how comfortable customers will be with you running around sliding their credit cards through your phone.  The daily limits are also rather low.

1. 2.      Merchant Advance

A Merchant advance can give you extra capital and lower your merchant account fees. A Merchant advance company will purchase your future credit card sales at a discount and advance you the money for them. While some of these companies will try to rip you off with a steep repayment, others are more reliable and can also get you a discount on your credit processing fees. Try a company like Performance Commercial Capital. If you can get good terms, you could save some real cash at the register and have extra capital.

If you choose to go this route if you want to look into this}, make sure the company is safe and you read the terms carefully .

1. 3.     Congress

Last of all, Legislation may take care of this. At the time this article was written, Congress was debating a credit and debit processing amendment to the Finance Reform bill. While it would cap processing fees, it may have some unintended effects that could raise overall costs. It’s worth watching to see how it will play out

On another note, if your small business accepts credit cards, you may be able to leverage your future receivables for a merchant cash advance.