The Merchant Processing Guru Tip#9: “Hidden Fees”! The hidden fees referred to in the credit card processing business are fees like mid-qualified & non-qualified rates that are not disclosed when the agent is setting up the account with a merchant. Many will come in offering a great low qualified rate without disclosing to you, the business owner, all the “downgrade” possibilities that are part of processing cards.
Yes, there are other fees in this industry like a statement fee, a batch fee, an annual fee, an early termination fee, a chargeback fee, just to name a few but these are all part of the cost of processing credit cards. Many will have you focus on all these fees to steer your attention away from what is really important, the downgrade charges.
Let’s look at it this way: If you had a $99.00 annual fee, that is an additional $8.25 per month cost of doing business. But should you pay 1% more than you have to with your discount fees, on say, a volume of $10,000 per month, that is $100.00 per month additional cost of doing business.
I am not saying that the miscellaneous fees are not important to look at, you must absolutely know and determine if they are fair and know what your costs in all areas are going to be. Just don’t allow that to take your attention away from what is really important, your discount fees, as that is where you could lose a great deal of money, unnecessarily and unknowingly if you are not careful.
Contact me at: [email protected]