Tuesday, September 6th, 2022
You might be surprised to learn that many hidden fees are lurking inside your merchant account. When you sign up with an acquirer or payment processor, they often don’t tell you all the details about their services and how much they charge.
Instead, the pricing information is hidden in the Terms and Conditions document, which most merchants never read! If you don’t take the time to audit your merchant account fees, you could end up paying hundreds or thousands of dollars in hidden fees without knowing it!
What is a Merchant Account Fees Audit
A merchant account fees audit is when you examine your merchant account provider’s monthly statement to ensure they are charging you the correct amount. This is important because often, businesses are overcharged, and other times they’re charged for services they didn’t receive.
Why is this a problem? If you’re not regularly auditing your merchant account fees, you could be paying hidden fees that are eating into your profits. By auditing your account, you can spot these hidden fees and reduce your sales commissions, resulting in more savings for your business.
Reasons You Should Audit Your Merchant Account Fees
You could be ripped off if you’re not auditing your merchant account fees! Here’s why you should audit your fees regularly:
- You’ll spot hidden fees.
- You’ll reduce sales commissions.
- You’ll avoid paying high monthly service charges.
Lastly, you’ll save more money by eliminating unnecessary charges.
How to Audit Your Merchant Fees
Here are six steps to audit your merchant account charges:
- Start by getting a statement from your merchant account provider that itemizes all the fees you’ve been charged over a set period.
- Review each fee and compare it to the list of standard merchant account fees.
- If you don’t recognize a fee, contact your merchant account provider and ask for an explanation.
- Once you understand all the fees you’re being charged, consider the interchange rates (the fees charged by card issuers).
- Interchange rates can vary depending on the type of card used, so make sure you’re not being overcharged.
- If you are being overcharged, negotiate with your merchant account provider for lower rates.
Alternatively, you can outsource the audit to a third-party company and use the report to negotiate better fees.
How to Negotiate Lower Rates
If you’re paying too much in merchant account fees, it’s time to negotiate a lower rate. Here’s how
1) Ask your bank or credit card company for an explanation of the charges
2) Compare what they charge with what other banks charge
3) Ask them for a better rate if they can offer one
Take your business elsewhere if the rates are still too high. You don’t have to put up with hidden fees just because you’ve been using that merchant account for years!