The Hidden Costs of Credit Card Processing: What Every Business Should Know

For businesses that accept credit cards, processing fees can quietly eat into profits. While most merchants expect to pay a small percentage per transaction, many don’t realize that hidden costs can drive expenses much higher.

Common Hidden Fees:

• Interchange Rate Increases: These fees, set by card networks (Visa, Mastercard, etc.), fluctuate and may increase annually.

• Statement Fees & PCI Compliance Charges: Monthly or annual costs that add up quickly.

• Tiered Pricing vs. Interchange Plus: Tiered pricing models often result in higher costs, as processors bundle fees in ways that obscure true rates.

How to Reduce Processing Costs:

• Work with a provider that offers transparent, interchange-plus pricing.

• Regularly audit statements for unexpected fee increases.

• Ensure PCI compliance to avoid penalties.

• Negotiate with processors, especially if your transaction volume is high.

By understanding and monitoring processing fees, businesses can save thousands of dollars annually.