Little known facts with Your credit card processing that is costing you $$$!!
200 Cards with varying rates lumped into a bucket and charged out at the highest rate – 90% of merchants are paying three tiered pricing (Take for instance debit card rates should be 1.03% for Visa and 1.05% for Mastercard. But within this "bucket pricing" the rate for those cards will be that "great rate" your rep was so proud to give you, not the true cost. Check out the statement below where the rate is listed for Visa CHCK CRD and MDBT Merit... those are your check card "debits") 
According to USA Today (2/8/10) edition Credit card usage is slowing. Revolving credit — largely made up of credit card debt — fell by nearly 20% in November, the largest drop on record, according to the Federal Reserve, reflecting less borrowing by consumers and banks' tighter lending standards. Through October, the number of new credit card accounts was down 46% from the same period in 2008, according to Equifax.
Card issuers closing accounts and cutting back on limits for consumers – this means that consumers are using their bank card more and You are paying higher rates because of your three tiered "bucket pricing" Over 500 Processing companies but the big four controlling 40% of market – thus less competition, less bargaining power for lower rates (look at the "top five" merchant service companies listed below...in the average discount rate category "qualified rate" do you see interchange in any one of those?) 
Small businesses being scrutinized, profiled and then up-charged – small business owners...since You do not have name recognition and that large volume many companies profile You in order to charge You higher rates. Some of the criteria for profiling is ethnicity, gender, credit rating and specifically knowledge of the industry. Notice how this industry has long been "secret" and discussion of rates and fees were and most times still are taboo subjects.
Charge-backs that are ignored – small business owners struggling to survive not only do not take the time to audit their statement monthly but do not usually open their statement envelope and surely would not open other mail from the processing company – since this is usually how you are notified of a chargeback not opening that letter could cost you your merchant account as well as a hold being placed on your deposits Higher rates than expected to pay – some processors verbally contract with you for say 1.64% and charge you on your statement at 1.649% 
Not being in a contract to protect verbal agreement – just let me say if it is not in writing it does not exist
Leasing equipment – ANY REP WHO LEASES YOU EQUIPMENT DOES NOT CARE ABOUT YOU MR/MS SMALL BUSINESS OWNER because a leased terminal can cost you up to 4000% more than purchasing a used terminal 
Sitting on hold when you are needing help with customer service issues – the average on hold time when calling a business is 43 to 60 seconds per transfer, averaging 3 to 5 minutes (let me just ask you, if you have a problem and need to call customer service do you think your customer is going to wait while you take care of your problem? And do you have a local number for your rep if you need a quick question answered?)
PCI Compliance costs start around $10,000 and can range up to and include $500,000 – to date more than 2.7 million dollars has already been spent by small business owners at an average of $237,000 per company to be audited and become certified for PCI compliance (are you aware that you have to be compliant and that you have to be certified by an authorized security company that you are complaint???) Now click here back to return to PCI DSS because that information is crucial to every merchant. 
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