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How To Avoid Overpaying For Credit Card Processing

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Rose Holman

Rose Holman

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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    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?


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        This comment refers to an earlier version of this post and may be outdated.


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          This comment refers to an earlier version of this post and may be outdated.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            This comment refers to an earlier version of this post and may be outdated.

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