Cutting Costs and Increasing Profits in California

While businesses constantly strive to improve their product or service, they must look at the end game of increasing their profits as well. One way of cutting costs and increasing profits in California is for businesses to consider a zero cost credit card processing program. While this program is available in 40 states now, it is not available in Connecticut, Maine, Massachusetts, Oklahoma and Kansas; not yet any way. Business need to examine various solutions to increase profit margins, and electronic payment solutions is a good example. We are a trusted adviser to many businesses across the country and offer solutions that fit their business to help them reduce their monthly costs.

Friends with woman holding out credit card at coffee shop


I have been advising business for years, and of course credit card processing rates and fees is one of those areas that causes them much confusion. There are over 200 different interchange rates that the card brands establish based on the type of card a customer uses when making a purchase.

There are rewards cards, corporate cards, travel cards, etc. A good portion of the cost of these cards is passed on to the business owner. Another complaint I get from merchants is how complicated a monthly statement can be in some cases, depending on the processor they use. Fortunately, the processor we often use has a fairly straightforward statement that is not difficult to understand.

Our new Zero Cost Credit Card Processing Program is attracting the interest of business owners who are looking for a way of cutting costs and increasing profits in California. It is a way of passing the processing fees onto those customers that choose to use a credit card as their form of payment. This is perceived as a fair way of only passing the cost on to those customers, and does not increase the price of goods or services for those that pay with cash or by check. Also, if the customer uses a debit card, there will be no additional charge. The approved software makes implementation of this program very easy. It is a turn key solution for merchants of all sizes, but is not available to high risk merchants.

While there are certain fixed monthly costs the California business will still have to pay, there are significant savings to consider. Fixed monthly costs are under $100 and cover software fees and updates, terminal usage fee, PCI compliance fee, monthly account maintenance fee and a debit enablement fee. Auto body shops, as well as auto repair shops, auto service stations, auto restoration, tow truck operators and auto paint shops are able to save thousands with the new zero fee processing program.

Sam and Tootsie at Budget Cleaners in Riverside CT
Sam and Tootsie at their Budget Dry Cleaners in Riverside, CT

Savings Example – Let’s say Sam and Tootsie own Budget Dry Cleaners and they do $35,000 per month in credit card processing from their customers. If their credit card processing effective rate (not counting fixed monthly fees) is 2.5%, then they are paying $875 per month in merchant processing fees. They can be saving that $875 per month and paying fixed monthly costs of under $100 as mentioned above. That’s a savings of over $10,000 yearly, which is quite a savings for a small business.

By the way, my brother Joe and I were feeling a bit nostalgic when we put this page together. That is actually our parents, Sam and Tootsie, who worked together at their store for over 25 years, six days a week. They were devoted to their customers and the families they saw over the years, who became more than just customers. They were so well liked in the community, that when they retired, some of their customers got together and threw them a surprise retirement party. Mom and dad trained us well. They passed on that same strong work ethic and customer care to Joe and I so you can expect that same degree of professionalism and care when we handle your account and advise you on the options available for your business and how we can reduce your costs.

We provide Options and Solutions to Help Businesses

This zero cost credit card processing program is not being offered by many credit card processing sales teams.  Some have not been able to reach an agreement on terms, some don’t know about this program and others don’t want to offer it to their clients because of contractual obligations. We have never tied ourselves to one processor or product and continually stay on the cutting edge of technology, regulatory changes and ways to help our merchant clients large and small.

John LaRocca is a trusted adviser and consultant to many California based businesses, and others across the US. His clients include large corporations, small mom and pops, numerous restaurants, retail operations and even small non-profits. His strength lies in being able to offer solutions and options to businesses to help them get to the next level, even if it just means reducing their costs by 1 or 2%. His experienced and knowledgeable team are always available to answer questions and offer suggested solutions to help you and your business be more successful.




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