5 Hacks For Reducing Your Fees
There are plenty of costs associated with becoming a business owner. Paying for office space, stationery, bills, salaries, the snacks your employees are wolfing down at an entirely unsustainable rate – when you’re the boss, forking over cash becomes par for the course. Some things (snacks especially) are bonafide business essentials but, as a small business owner, you don’t want to be losing money where you don’t have to be.
So, follow these five simple hacks to reduce the fees you’re paying at the bank so you can keep your money where it’s most needed (and that’s with the snacks!).
- Waive goodbye to your annual card fee (pun intended)
Check with your card provider about the possibility of waiving your annual card fee. Your card fee is the annual fee you pay your financial institution. Generally, all cards have annual fees associated with them but the more rewards or features your card offers the higher your annual fee tends to be.
To make sure you’re not paying more than you need to, you should make sure you’re actually benefitting from all the features attached to your card, if not – you may want to consider a card with lower features and a, therefore, a lower fee.
Some banks will also offer to waive the fee for specific cardholders if they spend a certain amount over the year. To find out more information, click here for an article on the subject.
- Make sure you don’t miss a payment
Most credit card providers will charge a ‘missed payment fee’ if you haven’t made the monthly minimum repayment by the due date. The simple way to avoid this fee is to make sure you pay your credit card bill on time every month but we all know this is easier said than done. Sometimes life gets in the way and, regardless of your best intentions, you’ll find yourself missing a payment.
There are a couple of ways you can avoid this, setting up an automatic payment or you can use a reminder app to keep you on top of it and avoid late fees.
- Stay below your limit
Contrary to the wisdom behind Tina Fey’s classic, Mean Girls, when it comes to credit cards, the limit does exist. Banks will charge you for exceeding your credit limit during any individual cycle. To avoid being charged, keep an eye on your balance and try and avoid making any major purchases towards the end of your credit cycle.
- Suss out surcharges
Though a surcharge of a few percentage points might not seem like a lot, these surcharges can add up and end up costing your business a lot of money. There are a few simple ways you can avoid surcharges:
- When using an ATM, make sure you stay ‘in-network’ to avoid a surcharge.
- When making purchases make sure you’re aware of any credit card surcharges. Some businesses may attach a ‘surcharge’ for credit card payments, so you might want to pay cash or use a debit or EFTPOS card for certain purchases to avoid a fee.
- You’re not at the best bank for your business
Finding the best financial institution and credit card for your business needs can be a delicate decision. Make sure the fees you’re paying are worth the extras you’re receiving and, above all, make sure that you trust your bank to look after your best interests and your money. To find out more about which credit card would be best suited for your business, check out this comparison article.