The War on Businesses and High Credit Card Processing Fees

For years, merchants and retailers have beenbecause they key in transactions, process
waging a war in the Payment Processing industrycommercial, business, purchasing and government
over "interchange fees" -- the hidden costs ofcards, they ended up paying 3.50% or more.
processing credit and debit card transactions.Visa and MasterCard have special programs for
Interchange is the amount of each sale that goesbusiness that process commercial, business,
back to the card issuing bank and attributes topurchasing and government cards, but because
about 65% of a merchants actual feesmost processors/sales associates lack the training
Although interchange is a significant part of thisand expertise related the acceptance of these
equation, I am here to show you that almost halftypes of transactions, merchants are set up
of your credit card processing fees/downgradesimproperly and have an abundance of
can be attributed to working with a sales rep orunwarranted and unnecessary fees and
company that many not be properly trained ordowngrades.
have a true understanding of how your businessYou may see some of these on your statement:
operates.MID QUALIFIED, NON QUALIFIED, EIRF,
It's a scary thought, but there is no regulation inSTANDARD, COMMERCIAL ELECTRONIC AND
our industry; anyone can sell payment processingCORPORATE DATA RATE 1.
with no formal training. Sam's Club and Costco areThese fees can easily be eliminated or reduced by
now offering payment processing services. I can'tworking with a payment processing specialist who
tell you the number of merchants whom we haveis familiar with not only interchange but
worked with that are using one of theserequirements needed for transactions to process
programs. They were quoted one rate, butas efficiently as possible.