I just got my first credit card processing monthly statement bill and it was way up high than I expected. I scrutinized the items and I discover I incurred surcharges. What are some of the hidden surcharges I need to know?
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What are some of the hidden credit card processing surcharges I need to know?
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Check the contract you signed. There should be a schedule of your rates and fees attached. You need to call your credit card processor's customer service number and have them review your statement with you in detail to make sure you were charged correctly. The main reason most merchants pay more than they expect is because they expect to be charged the rate quoted. That only happens when the transaction is "qualified". That means that the transaction is swiped and reads in the machine and the card itself is not subject to surcharges, such as an airline mileage card in some cases. If the magnetic stripe doesn't read or it is a phone order and you have to key the card number the transaction downgrades and surcharges apply. That is where some processors make their profits because they charge you more than the card associations charge them for those transactions. If that's the case, about the only thing you can do is try to make sure you get set up with an application to key in the zip code on phone orders to try to minimize your downgrade charges and check your contract for the expiration date so you can negotiate a better one next time.
Since you didn't specify the surcharges you discovered in your monthly bill, I could only speculate that those are chargebacks.
Aside from chargebacks, you could also incur downgrades– very nasty and could eat away a significant portion of your revenues. Check your bill once again and consult your credit card processing provider about these downgrades.