When you’re running a business, you may be getting charged left and right for services without even realizing it until you receive your bill. Service providers don’t always explain what the extra charges are, such as a PCI compliance fee, transaction fees and batch fees. Here are some of the most common business fees that eat away at your profit.
PCI compliance fees.
If your business accepts credit cards, PCI (Payment Card Industry) compliance is absolutely necessary. Being PCI compliant means that your business is ensuring the security of the credit card information your business obtains against theft and fraud. Some merchant processors will charge a PCI compliance fee, but this charge is only fair to receive if your merchant processor gives you resources and tools to help with PCI compliance. If your processor isn’t, this fee is unnecessary because you should not be charged for something that you are not receiving a service in return for. Fattmerchant will never charge you a PCI compliance fee.
One of the fees that you will always see on your bill is a transaction fee. This is a fee that your credit card processor charges you each and every time your business swipes a card. Sometimes you’ll still even get charged if the card is not approved. The transaction fee varies based on your processing provider, but no matter what, you will get charged per swipe. Because of this, it’s very important to do your research and make sure you’re not being overcharged.
Statement and customer service fees.
A statement fee covers the cost of receiving your statement, usually costing merchants $5-$10 for a paper statement. Some companies also charge their merchants a customer service fee for contacting customer support with a problem. These fees may not be a large chunk of your monthly balance, but it’s still an extra amount you have to pay. You may want to consider a processor that doesn’t charge you for customer support, like Fattmerchant, especially if your business is new and if you’re trying to save wherever you can.
Each time your business swipes a credit card, the information is stored in credit card terminals with all of the authorization codes in a data file. When it’s time to close the batch, all the codes are sent to your credit card processor, who then sorts and forwards them to the appropriate bank. Then the banks release the funds to your business’s bank account. You can be charged each time you close a batch, so most businesses do this at the end of each business day to avoid multiple ancillary fees. Fattmerchant doesn’t charge batch fees or any other hidden fees.
If you’re unhappy with your merchant processor and want to stop doing business with them before your contract is up, then you may be charged with a fixed termination fee. This may lock you into doing business with a provider for longer than you want, especially if their fixed fee is high. It’s important find a processor that won’t punish you for cancelling your contract. Fattmerchant prides itself in their philosophy that you deserve better than a termination fee.With Fattmerchant, you won’t be locked into a relationship you don’t want. You’ll never see a termination fee from Fattmerchant… ever.
When choosing a credit card merchant processor, it’s important to be aware of all the fees showing up on your monthly statement. At Fattmerchant, we’re a subscription-based merchant service provider. With us, you’ll never have to worry about having to pay for any hidden fees or markups. If you want more information on how to save yourself from having to pay miscellaneous business fees, contact Fattmerchant today!