Are you paying unnecessary, hidden or high fees in processing costs?
Interchange rates, card association fees and processing fees are all a cost of accepting payments, and are almost always included on your monthly merchant statements. Merchant statements, however, can be fairly complex documents, and it is often difficult to interpret how all these different fees are being applied to your operation and why. These statements, which sometimes resemble more of a cell phone bill, can be a great place for processors to sneak in a few extra fees without your knowledge. We want to make sure you know how to spot unnecessary, high or hidden fees.
Lookout for unnecessary rate increases
Did you know that the major card brands publish modifications to rates every year? These updates typically include increases to the interchange rate or fee that is assessed on credit and debit card transactions. It is a common and expected practice for most processors to pass along the updated rates to you in the form of a notification and increase in fees. Due to the COVID-19 Pandemic, however, the major card brands have delayed their annual rate increase to April of 2022 meaning your interchange fees should theoretically not increase this year. Passport has acknowledged this delay and will not increase its processing costs. Some processors, however, could try to implement higher fees regardless of the delay. Keep a close eye on merchant statements over the next couple of months for any rate increases or added/hidden fees.
Work with a payments partner who has access to negotiated rates
Because many of the larger merchant processors are focused on offering services to a wide range of clients, they can’t offer specialized, negotiated rates for smaller transactions. Parking transactions are inherently small. If you don’t work with a processor that has access to negotiated rates on payment processing for parking, you could end up paying higher fees on these micro-transactions which could affect your bottom line. Passport can save cities anywhere from 15%-20% on processing costs each year through negotiated small ticket interchange rates with the Card Networks.
Don’t pay high chargeback fees on small transactions
Chargeback fees can add up over time, especially when paying high fees on micro-sized transactions. With Passport Payments as your integrated payment processor you will benefit from chargeback fee waivers. Passport will waive chargeback processing fees and take the burden off you. Each client will receive a minimum of 3 waived chargeback fees per month and up to 0.015% x transaction volume.
Are you paying too much in fees? Our Payments experts can analyze your merchant statement to see how much you can save by switching to Passport Payments.