I just took a close look at my credit card processing agreement and wow, the fees are eye-opening.
It’s a wake-up call on how important it is to actually read the fine print. I can’t believe I let it slide for so long.
Been there. Processing fees add up fast when you’re not watching.
What rates are you seeing? I switched last year after getting hit with:
- Monthly gateway fees I didn’t know about
- Higher per transaction rates than advertised
- Random “maintenance” charges
Shop around if the numbers suck. Most processors will negotiate if you threaten to leave, especially with decent volume.
Also check if you qualify for lower rates based on your business type.
Switch processors if the fees suck. I’ve done this three times before finding one that actually works. Get multiple quotes and compare them line by line. Don’t just look at transaction rates. Check setup fees, monthly minimums, and equipment costs too. Make them put everything in writing before you sign anything. If they won’t, walk away.
Yeah those fees are brutal when you actually look
The Problem: You’re concerned about unexpected and hidden fees in your credit card processing agreement, impacting your business profitability. You’ve discovered these fees after failing to thoroughly review the contract initially.
Understanding the “Why” (The Root Cause): Credit card processing agreements often contain complex fee structures, including hidden or obscure charges that can significantly increase your processing costs. These fees may include monthly gateway fees, variable transaction rates based on card type, PCI compliance fees, and others. Failing to thoroughly review the agreement can lead to substantial, unanticipated expenses. Furthermore, processors may subtly increase rates or introduce new fees without clear communication.
Step-by-Step Guide:
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Regularly Review Your Processing Statements: Dedicate 30 minutes every six months (or even quarterly) to meticulously examine your credit card processing statements. This proactive approach allows you to identify any unusual or unexpected fees early, enabling timely action and dispute resolution. Pay close attention to details like per-transaction fees broken down by card type, monthly charges, and any additional levied fees (e.g., PCI compliance fees).
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Compare Rates and Fees from Different Processors: Do not be complacent with your current provider. Contact several different credit card processing companies and request detailed pricing quotes. Compare the quotes line by line, examining not only the transaction rates, but also monthly fees, setup fees, equipment costs, and minimum processing volume requirements. Ensure all costs are clearly documented in writing before committing to a contract.
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Negotiate with Your Current Processor: If you find better offers from competitors, use this information to negotiate with your existing processor. Many providers are willing to reduce fees or offer better terms to retain clients, especially if you have a sufficient processing volume. Clearly communicate your intention to switch providers unless they offer comparable rates.
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Thoroughly Read Any New Agreement: Before signing any credit card processing agreement, carefully read every page, paying particular attention to sections regarding fees, rates, and terms of service. Understand how different card types are processed and whether variable rates apply. Note the exact details on any monthly or annual fees, set-up costs, and equipment leases or rentals. If you encounter anything unclear, contact the provider for clarification before signing.
Common Pitfalls & What to Check Next:
- Hidden Fees: Be aware that processing companies often bury less-advertised fees in the fine print. Do not assume that the advertised rate is your only expense.
- PCI Compliance: Ensure you understand your PCI compliance requirements and the related costs. Many processors offer assistance, but failure to maintain compliance can result in heavy fines.
- Chargebacks: Review your chargeback rate. High chargebacks may lead to increased processing fees. Implement measures to reduce fraudulent transactions and customer disputes.
- Contract Length: Pay attention to the contract’s term length and renewal conditions. Many contracts lock you in for a year or more with early termination penalties.
Still running into issues? Share your (sanitized) credit card processing statements, the details of any quotes you’ve received, and any other relevant details. The community is here to help!
Those hidden fees get everyone. Just pay whatever they charge and move on.
Check your statements regularly. I found some overcharges and called to complain. They reduced several fees just because I asked. They prefer to negotiate than lose a client. I now review my statements every three months to spot any hidden charges.