During the time when your business has been down due to the slow economy and your costs are rising for accepting credit cards? Yes, your rates and fees you the small business owner pay may go up, way up depending on whom you do business due to.
One Merchant Services processor announced they were raising their rates by .27%!! It really is a huge increase. Definitely doesn’t stop right now. I’ve seen several other companies hop on the bandwagon and announce they have raised their rates quite. The largest increase I’ve seen so far has been even.45%. So if you were paying 2% you will be paying 2.45%.
Please keep in your this is not Visa, or MasterCard raising their rates, it is the Merchant Services Processing companies!
Time to make your Statements out!! You ought to have received these planet mail by this point. In the last paragraph on finally page of your statement is where they usually disclose (hide) the rate increase. It may be a % the rates are going up and/or a transaction fee ($.xx) increase. Additionally, it states that if you continue to process with the company May 1st you’ve agreed to their rate increase.
It may be time to shop around for a different Merchant Services Provider if your current company is raising your rates. There are plenty of Merchant Services gambling payment providers out there that are not increasing their processing rates.
I’m frightened at the number of business owners or those answerable for the books for companies, who don’t even bother opening their statements anymore! This industry is very broken and the majority of of the processors have made their statements so confusing and hard to read, that business quit opening these. This gives these companies a real easy way to make rates and fees since all the alerts and communications are on the statements.
I have held it’s place in the payments processing industry as a bank account executive (OK salesman, but account executive sounds better) for over 9 years. Amongst the things I’ve learned is there are a lot of games being played at your expense.
It is very important to process credit score cards as efficiently as possible so you merely reduce the fees you pay. A lot of the fees not only do you can be avoided if you know what to look for.