Processors 

Even if everything above gets answered well, processors add new fees, hide fees, inflate fees, etc. There is not a day that goes by that we don't see something new they are trying. Processing at its very core is somewhat complicated, especially when you add in the fact that thousands of companies are selling it. The only way a processor can appear to charge less is to find new ways to hide fees, make up fees, or inflate interchange, and the list goes on and on. Almost daily we discover something new they are doing. Unlike most companies that spend their money trying to invent or make something better so everyone will want to buy their widget, credit card processors spend their money trying to find new ways to hide their fees. The only thing they are selling is a connection point. Imagine if you will, over ten thousand companies trying to sell you electricity for your home. Electricity is electricity, so you will always pick the cheapest company. So for a company that is not the cheapest, how do they stay in the game? They might say that their electricity is faster, better, etc. No, they say they are cheaper! Only after you get the first bill, do you find out you have a poll charge, a line charge, office expenses, weather fund, etc. But even with this you can see the con and tell your friends to stay clear. So they have to get more creative in HIDING the fees.

The Competition 

Sometimes we see where merchants are worse off. You will get locked into a contract where you have to pay 50% of their forecasted savings. More times than not, we see where they will get one fee lowered and take their cut on those savings, while the processor then adds in other new or hidden fees to make back up their losses. In essence, the merchant is paying the same overall fees, and now, they have a bill from the other company staking claims to the fees that they got lowered. Most of the time is just the discount rate, which more times than not, you can do on your own just by making a call. But again, don't get fooled, they can just add them back in by inflating interchange, making up new fees, etc. Read our blog for more on how creative they can be. Just remember, this is a non-regulated industry, so anything goes.