04/12/20
By Julia Olson

Getting Smart with Credit Card Processing Fees

Credit card processing is already confusing enough without having to worry about what you should and should not be paying every month. Traditional providers charge unnecessarily high credit card processing fees for things that don’t actually cost them any money. These are intended to make a larger profit, banking on the fact that you the business owner, won’t question the charge among all of the confusing line-items.

There are three main ways payment processing fees can be broken up – required, recurring, and one-off. Here’s a breakdown of what to expect on your statement, and how to avoid paying more than you need to for something as essential as payment processing.

Transactional Credit Card Processing Fees

Transaction fees are associated with each transaction you run for your business. They are broken down into interchange and cents per transaction. These come directly from the credit card companies and are considered the “pay-to-play” cost for accepting credit cards at your business. Interchange fees are non-negotiable and every merchant must pay it regardless of who they have their credit card processing services with.

Interchange rates vary based on the type of credit card you are accepting. The more expensive it is for the credit card company to maintain the card with things like rewards, cash back, and other perks, the more expensive the interchange. This means that debit cards typically charge the lowest interchange rate and business credit cards the most expensive.

Related Article: Understanding Credit Card Interchange Fees

Recurring Credit Card Processing Fees

Most traditional payment processors make a lot of money by not only adding a percentage on top of interchange but adding recurring processing fees on your monthly statement as well. These monthly fees are typically pure profit, as it doesn’t actually cost the processor anything in order to offer the processing services that the fee is allegedly for.

Keep an eye out for these merchant services fees on your next statement and you could save hundreds of dollars on your next bill!

  • Monthly Minimum Fee
  • Statement Fee
  • Batch Fee
  • Next Day Funding Fee
  • Annual Fee
  • IRS Report Fee

One-Off Credit Card Processing Fees

You’re probably already wondering how many more ways you could possibly be charged for payment processing – but believe it or not, there are other ways processing service providers skillfully take your money.

Some fees might not be on every single merchant account statement but rather triggered by individual actions. Keep an eye out for:

  • Credit Card Terminal Fees
  • Setup Fees
  • Early Termination Fees
  • Reprogramming Fees
  • PCI Compliance Fees
  • Address Verification Fees
  • Chargeback and Retrieval Fees
  • Payment Gateway Fees
  • … and so many more!

Related Article: 5 Ways to Avoid Extra Credit Card Processing Fees in 2020

Needless to say, unexpected credit card processing fees can all really add up!! Credit card processors make huge profits on the fact that the average business owner is not aware of what they are paying and why.

How to Save of Credit Card Processing Fees

With Fattmerchant, your card processing statement is simple. All you pay is a monthly membership which provides you with access to the direct cost of interchange and absolutely no extra fees. We take pride in never adding hidden charges or payment processing fees just for the sake of profit.

In the meantime, be sure to look into additional ways to immediately reduce costs and increase savings.

If you have any questions on how our team can help you quickly save on credit card processing fees, reach out to Fattmerchant using the form below. We will be happy to answer your questions and see how we can best support your business.


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