Beware Of Hidden Fees: Credit Card Processing

Due to the fact that there is a small amount of disclosure a credit card provider has to give to a business owner while setting up an account, merchants can get extremely confused. Quotes that are given are hardly ever the same from one provider to another which makes them complicated. Transaction fees that could end up being twice the amount the agent quoted along with business owners not realizing there is a three to five year contract make a lot of merchants angry.

Here are some hidden fees, also known as junk fees, a merchant should be aware of:

Return Fees: When a customer returns a purchase the charges to their credit card are reverted back to their account. However a merchant doesn't receive the processing fee back that was originally charged upon return of merchandise. This is due to the fact that banks and processors don't like losing money any more than any business would.

Chargeback Fees: Most merchants are aware that they will be charged a fee for any dispute by a customer regarding a transaction. However most are not aware that there could be an additional chargeback fee not brought to a business owner's attention before signing up with a processor.

PIN Debit Fees: If a customer prefers to use a debit card where they have to enter a PIN number into a PIN pad there is usually a transaction fee involved. This is a common transaction but some processors will charge an additional debit network fee.

Reserve Account Maintenance Fees: It is highly NOT recommended to deal with a provider that requires a reserve account, much less the fees that accommodate this type of account. This fee is usually charged each month and figured by the amount of monthly sales or as a reserve against chargebacks, mostly with a business that is considered to be a high risk.

Watts Surcharge: This fee is charged if the credit card terminal can't connect with the processor through the regular local phone number. There is actually a fee added each time the line is busy or some type of problem that won't allow a connection and the transaction has to roll over to a toll-free number instead.

Over Limit Fee: If a merchant has a higher volume of monthly sales than previously agreed upon in their contract they will be charged for going "over-the-limit". This fee is a percentage of the sales that are made over the volume and can be as high as 5%.

These are just a few of the hidden fees that a merchant should take heed of. A business owner should do thorough research on a credit card provider before deciding which is best for their business.

It's important to find a provider that will understand what it is you as a business owner need. There is a provider that can fulfill these needs that are completely designed for you and your business. Start saving the money that you work so hard for TODAY!