Bundled Billing (BAD)
Processors hide their Discount Rate by bundling it with Processing Network Fees (Visa, MasterCard, and Discover) which are the Base Interchange Rate along with Dues & Assessments.
When the fees are bundled together, the merchant has no idea what their actual Discount Rate is.
Can you tell how much the credit card processor is making on this deal?
The answer is 0.60% on the MasterCard transactions and 0.63% on the Visa transactions. It's easy to see why the processor would want to hide that. The actual fee should be 0.07% or less.
Very easy to detect
Does not require an audit to uncover
Found on about 65% of audits
Found on small to large merchants
Unbundled Billing (GOOD)
This is an example of Unbundled Billing. The credit card processor is making 0.74% on this deal. The rate is very high! However, at least it’s disclosed, which allows for negotiation. After all, you can’t negotiate what is not disclosed or something you can't see.