all of these companies above also charge the merchant a monthly fee to access their platform, however they have become. They are paying for all the things to securely, and safely run run your card, don’t forget that.įinally bear in mind almost. Remember, what the merchant is getting for the processing fees is a SERVICE to them….just like electricity. Online anyone can be running your card and the cost of charge reversals also becomes a factor. Yes these processing fees are different if the card is swiped, keyed, or used online simply because the security of those is considered different. These are just the basic published rates, but even square will give a lower rate once you do $250k a year in transactions. What you also have to realize is all these processing fees are usually negotiable based on the merchants level of transactions too. You can see these are pretty much in line. So what are these processing fees like? Below I have built a small table just of the most common public processing fees. People seem to think this is an all new practice, when it’s not. My dad was paying these fees back in the 90’s when he had a store. These fees have been charged to merchants for DECADES. Understand this includes things like security costs, PCI Compliance costs by the processor, and a host of other things that is meant to help the merchant securely run your card. These are the fees charged to a seller to run your credit card. What Are Merchants Paying For Processing? In fact I am friends with merchants that live on both sides of this fence. For the record STK Promotions has never bought into this practice and never will, nor any other business we run. Hopefully I am able to convince you to ask more questions and at the same time convince some merchants to just stop the practice. I feel as though more people need to educate themselves better than the merchants and call these things out or even start filing the merchants with the state Attorney General’s offices. Also what I am finding is many merchants do not even understand how these are supposed to be used and the rules around them. In fact I am going to try and explain why this isn’t the case and in fact how this is just hurting their own reputations. The problem lately is everyone is starting to do it because they THINK it’s actually solving some new sort of problem for them. I have been on a tear on social media channels and more specifically on my Google/Opentable reviews when it comes to merchants and restaurants incorrectly using of so-called convenience fees.
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