The Top 5 Tricks & Misleading Techniques Used by Credit Card Processors

fwwef

As you shop around for credit card processing services, you may quickly realize that this is not the most honest industry.

Common questions arise like: “Why do so few providers show their rates on their website?” or “Why are there so many rate structures?” or “Why can’t I just get a straight answer?”

To help merchants avoid the pitfalls of the credit card processing industry, we’ve compiled a list of the top five things to watch out for when shopping for credit card processing services in the USA.

#1   Teaser Qualified / Non-Qualified Rates

Processors advertising rates “as low as” 1.00% are pretty common these days. Unfortunately, since the payment processing industry has no advertising standards, what they don’t disclose are all the assessment fees, mid-qualified and non-qualified charges tacked on top.

Ever see flights advertised for “$99” each way? Ever pay “$99” for those flights by the time you reached the checkout? Unlike airlines, however, most processors bury these hidden fees in the fine print and go unnoticed until it’s too late. 

#2   PCI Compliance Fees

Many processors have recently started charging annual, quarterly, monthly PCI fees. Some will call these “Breach Coverage” or “Security” fees. Unlike most providers, our PCI program is already included in our monthly fee.

#3   Annual Fees

Instead of being upfront about the monthly cost of your service, many processors will bury some of their costs through annual fees. These fees usually range between $50-$200 and can be hard to spot, since processors only have to sneak these by you once a year. Most times they come in the form of an “IRS Reconciliation”, “PCI Compliance” or simply “Annual Membership” fee.

#4   Monthly Minimums

Nothing says “We don’t value small businesses” like penalizing them for not processing enough transactions. Unfortunately, most small merchants soon realize that their low monthly fee is actually quite high.

Processors place “monthly minimums” on the total fees generated from Visa/Mastercard transactions, meaning that if you don’t process enough payments, you are paying for them anyway. To add insult to injury, some processors even call these “low achiever fees”.

#5   Contract Cancelation Fees

Most processors have cancelation fees or early termination fees. Instead of providing a good service at a good rate to keep your business, they implement long-term contracts to try and deter merchants from switching to a more affordable provider.

AUTHOR
TABLE OF CONTENTS
JUMP TO
CATEGORIES
SHARE ARTICLE
Share on facebook
Share on twitter
Share on linkedin
Share on email
SHARE ARTICLE
Share on facebook
Share on twitter
Share on linkedin
Share on email
CATEGORIES
RELATED ARTICLES
a lawyer talking with a client and a credit card stand on the desk

Credit Card Processing for Lawyers

Lawyer Life Isn’t For Everyone In your day-to-day, there’s lots that can go wrong. Your client might miss a signature and delay proceedings, or maybe

Contact Us​.

We’re Always Happy to Help!

Our in-house team of Merchant Experience Specialists are here to share their knowledge, answer your questions and point you in the right direction. No commissions, no pressure.

New to accepting card payments? Many of our merchants are first time business owners who are unfamiliar with the industry. We take the time to help you understand how it all works as well as how to avoid common pitfalls.

Get In Touch

Toll-Free: +1 (877) 643-5246

 

Calgary Head-Office:

Suite 400 – 440 2 Ave SW

Calgary, Alberta T2P 5E9

Seattle Office:

Suite 4200 – 701 5th Avenue

Seattle, Washington 98104