As a CEO or CFO, you’re always looking for ways to cut costs and boost your company’s financial health. But what if one of the most significant drains on your bottom line is hidden in plain sight?
Outdated payment processing solutions often come with hidden fees—like PCI compliance charges, interchange fees, or chargebacks—buried deep within contracts. For high-transaction businesses, these expenses can quietly eat away at profits and hinder growth potential.
In this post, we’ll uncover the hidden fees that might be costing your business more than you realize and explore ways to reduce transaction costs.
Let’s dive in:
The True Cost of Payment Processing
Many businesses see payment processing as a necessary expense and don’t give it much thought beyond that. However, the costs associated with an outdated payment processing solution go far beyond the card payments listed on a statement.
In reality, several hidden expenses can quietly add up over time—costs you might not even realize are cutting into your bottom line.
Let’s break down the most common—and costly—culprits:
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1. PCI Compliance Fees
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards that all businesses accepting debit and credit card payments must comply with. These guidelines are designed to protect cardholder data and reduce fraud risk. Failure to comply with these standards can result in significant fines and penalties.
To help businesses achieve and maintain compliance, many payment processors charge PCI compliance fees. These fees are intended to cover costs associated with maintaining compliance, such as security assessments, audits, and more.
However, not all PCI compliance fees are created equal. While some fees are a fair cost of doing business, others are shrouded in a lack of transparency. Certain outdated payment processors may impose excessive fees without offering meaningful services or support in return. This leaves businesses footing the bill for unnecessary expenses.
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2. Chargeback Fees
Chargebacks—when customers dispute a transaction—are more than just a hassle. They can result in loss of sales revenue and increased costs for businesses. To help cover these expenses, some payment processors charge chargeback fees.
These fees may vary depending on the processor and the reason for the chargeback. For example, a processing fee for a fraudulent chargeback may be higher than one for a customer returning a product. It’s essential to understand how much your payment processor charges for each type of chargeback and ensure they are reasonable.
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3. Interchange Fees
Interchange fees are a type of fee that merchants pay to card-issuing banks for every debit or credit card payment. These fees are set by the card networks (Visa, Mastercard, etc.) and can vary based on factors such as transaction type, size, and risk level.
Interchange fees are an unavoidable cost for businesses that accept credit cards. However, some payment solutions may add additional markups to these fees, resulting in higher costs for merchants. It’s important to understand the interchange fees set by the card networks and ensure your payment processor is not adding excessive markups.
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4. Hidden Contract Fees
Many payment processing solutions include hidden fees in their contracts, such as early termination fees or monthly minimums. These fees can add up quickly and catch businesses off guard when they receive their bill.
In addition to hidden fees, some processing solutions may include long-term contracts with automatic renewals. These can lock businesses into using a specific provider, even if better options become available. Make sure to read the fine print in your contract and understand the terms and conditions before committing to a long-term agreement.
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5. Slow Processing Times
Outdated payment processing solutions may have slower processing times, which can be detrimental to businesses. Customers expect card payments to be processed quickly and efficiently in today’s fast-paced world. If a company is unable to keep up with these expectations, it can lead to frustrated customers and lost sales.
Furthermore, slow processing times can also delay the transfer of funds into a merchant’s bank account. This can cause cash flow issues for businesses that rely on timely payments to cover expenses or make investments. It’s essential to choose a payment processing solution that offers fast and reliable processing times to avoid potential problems.
EPS Solutions: CardPointe and CardSecure
Enterprise Payment Systems (EPS) understands the nuances of high-transaction payment processing costs. Our tailored solutions, CardPointe and CardSecure, are designed to help CFOs optimize their payment systems, mitigate hidden fees, and protect their bottom line.
CardPointe
CardPointe is a comprehensive payment processing platform that offers businesses a streamlined way to manage their transactions. It features a user-friendly interface, allowing companies to accept in-store, online, and on-the-go payments.
With CardPointe, businesses can reduce processing times with its fast and reliable payment processing technology. The platform also offers advanced security features to protect sensitive customer information and prevent fraud. Additionally, CardPointe allows businesses to access detailed reporting and analytics to gain insights into their sales and customer behavior.
CardSecure
CardSecure is a secure payment gateway solution that helps businesses minimize fees associated with high-transaction payment processing. It offers competitive interchange rates and protects against costly chargebacks. With CardSecure, businesses can also enjoy fast and efficient processing times, enabling them to meet customer expectations for quick payments.
Additionally, CardSecure provides PCI compliance tools and encryption technology to safeguard customer data. This ensures the security of transactions and helps businesses avoid fines or penalties for non-compliance.
Ready to Take Control of Your Payment Processing?
If you’re spending too much time and money managing your payment systems, it’s time to consider a new solution. At EPS, we understand the importance of efficient and secure business payment processing. That’s why we offer customizable solutions like CardPointe and CardSecure to meet the unique needs of our clients.
Contact us today to learn more about how our payment processing solutions can help your business grow and succeed. Our team of experts will work with you to find the best solution for your business.