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How To Avoid Overpaying For Credit Card Processing

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Rose Holman

Rose Holman

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Rose Holman is a writer, blogger, and educator from Portland, OR with an MA in Teaching from Western Oregon University. She enjoys educating SMB owners about the complicated (and notoriously sketchy) world of payment processing. Since starting at Merchant Maverick in 2016, she has also added eCommerce software to her areas of expertise.
Rose Holman
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6 Comments

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    Matthew Levy

    I would love to see a website that shows effective rates that merchants are getting across different industries and sorted by processor. So you can make an educated decision before you sign up with someone.

      Emily Hale

      Hi Matthew! That would make things a lot simpler, but unfortunately, it would be difficult to provide an all-inclusive “snapshot” that would be accurate for every business. That’s because one rate structure could affect two businesses (even within the same industry) in pretty significant ways depending on the volume of sales and other factors. That being said, here at Merchant Maverick we focus on helping businesses understand the types of fees they’ll encounter, and we take a deep dive in our reviews to help you determine if a specific processor is a good option for you. The Beginner’s Guide to Payment Processing eBook may be a good option to get you started understanding how to navigate it all. Hope that helps and best of luck!

        Lowell Parker

        We’ve been fighting with merchant service providers for years to give us contracts based on average net effective rate during the term of the contract, but they refuse. This should be an industry standard. Instead, merchant service providers prefer being able to manipulate their fees from one month to the next to squeeze profits out of the merchant.

        Our other gripe relates to chargebacks. When a cardholder claims a charge is not theirs due to fraudulent use of the card, the merchant (who has done nothing wrong) takes the hit by having that revenue removed from his account, despite having provided a product or service that cost money. What about the thieves who steal the cards? Sure, they are hard to find, but who asked credit card companies and their issuing banks to create products that are so easily misused, and who took them off the hook when the actual criminal can’t be found? Charging the merchant is blaming one of the victims. We’ve always wondered if this is written into law, or whether it just works this way because banks own the politicians in Washington?

          Guy

          You also need to take into account if processing fees are returned when the merchant issues a refund. Flate Rate processors normally do refund the fees.

            This comment refers to an earlier version of this post and may be outdated.

            Curtis

            Be sure not to include any Amex volume since Amex bills merchants directly, that would only distort the numbers.

              This comment refers to an earlier version of this post and may be outdated.

              Merchant Maverick Admin

              Great point Curtis. I’ll add that to the article.

                This comment refers to an earlier version of this post and may be outdated.

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              Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity. The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.