Credit Card Merchant Fees – Reduce Merchant Fees Without Changing Processors

Credit card merchant fees, which are charged to businesses by the credit card processors have been a headache for business owners for a long time. The rules that govern these fees are often several pages long and are changed, at a minimum, twice per year.

In 2008, banks raked in over $48 billion in merchant fees, mostly from small and medium businesses. Elsewhere in the world, over 44 countries have taken legal action to limit the overcharging of merchants that still is occurring in the United States.

Consequently, most business owners and cannot keep up with the ever changing landscape that their payment provider gives them, and are often being charged excess fees because they do not have the expertise to optimize their account to reduce the fees that are being charged. For a company that uses credit cards for the majority of their transactions, these excess fees can add up to literally tens of thousands of dollars on an annualized basis, costing their business dearly in the process.

The issue of fees has gotten to be so contentious that members of congress are actively working on a bill to attempt to limit these fees. Unfortunately, many banks and merchant processing companies have foreseen this eventuality and are already working on ways to circumvent this law legally to keep their lucrative fee structure in place.

To that end, merchants have banded together to attempt to stop these unfair interchange fees with a petition to lawmakers like senator Dick Durbin, who has actively taken up the cause. Because 93% of all businesses that currently have a merchant account are being overcharged, the problem has attracted the notice of prominent lawmakers.

In the meantime, there is a new way to lower a businesses merchant fees without having to switch processors or go through any changes to the normal routine of business. This new way, known as Rate Lock, allows a merchant to:

  • Lower their merchant fees, on average, between 8-20%
  • A contingency program – no upfront fees whatsoever.
  • Once fees are optimized, the account will be continuously monitored to ensure that fees do not begin to “creep” back up as rules change. Optimization is ongoing
  • An easy way to add back revenue to a company’s bottom line without increasing sales and with no upfront expense.

The fight against excessive merchant fees is sure to continue for sometime to come, as the stakes are very high in terms of dollars. In the meantime though, you do not have to stand idly by and accept these high fees. Click here to find out how to lower your merchant processing fees.