Your Merchant Services Guru

Navigating the often confusing world of credit card processing can be a daunting task for many small business owners. Often, they find themselves entangled in hidden fees that nibble away at their profits without their full understanding or explicit consent. This clarity comes from observing first-hand experiences, like the recent consultation I had with a prospective client, which perfectly illustrates the common pitfalls in the merchant services industry.

The complexity of merchant accounts is evident, as many business owners are not fully aware of the nuances in their monthly statements. These statements are typically dense and filled with industry jargon that can easily mask the reality of extra charges. During my meeting, which lasted a brief five to seven minutes, we delved into his merchant account statements. Despite not yet partnering with me, this business owner allowed me to review his charges to provide him with insights about potential overpayments.

Within moments, I was able to point out several 'junk fees.' These are additional charges that serve no real purpose to the business owner other than to increase the processor's margins. One egregious example found was a monthly charge of $79.99 labeled as a PCI compliance fee. PCI compliance is crucial for safeguarding payment data, yet this charge was unjustly applied each month with the indication that the business was non-compliant. Another shocking discovery was a $125 monthly fee for a marketing program that the business owner had never enrolled in or utilized.

The accumulation of these unjust fees over time can be financially draining. It highlighted to the business owner—and hopefully to others in similar situations—that reviewing statements is essential. Many may not recognize these charges and realize the financial impact they cumulate over months or even years, demonstrating not only a lack of transparency but also a potential breach of trust between the merchant service provider and its clients.

To those who currently use or plan to use merchant services, this example underscores the importance of vigilance. Therefore, here are three straightforward steps you can follow to evaluate and possibly reconsider your current merchant services setup:

1. Review Statements Regularly: This cannot be emphasized enough. Take a few minutes each month to go over your merchant statements. Look for any charges that seem out of place or that you do not understand. If something doesn’t add up, raise it with your provider.

2. Question Junk Fees: Not all fees on your statement are justifiable. Identify any recurring charges that you did not agree to or that you do not understand. Ask your provider to justify these costs or remove them if they are unjustifiable.

3. Explore Alternatives: If your current provider is not transparent about fees or seems to be charging unfairly, it might be time to look around. Evaluate other service providers that offer better transparency and more reasonable fee structures. It is essential to work with a service that respects the financial integrity of its clients.

The business world is challenging enough without having to contend with unnecessary financial burdens placed by your merchant services provider. By taking control of your merchant services, you can ensure that your provider is working just as hard for your success as you are. Remember, healthy financial practices are as crucial as your day-to-day operations in sustaining and growing your business. Do not hesitate to reach out for help in untangling the complexities tied to your merchant services; an expert can provide guidance, support, and perhaps most importantly, peace of mind.