Statements are not getting easier to understand, in fact, to the contrary. This highlights a desperate need for tighter industry regulation.

Processors & Banks could easily make statements EASY to comprehend by being transparent: showing fees & rates along with corresponding transactions.

Instead, the fees are DELIBERATELY obscured and convoluted so that you—the busy Merchant—won’t see what is going on with your money.

What is going on with your money?   You’re being nickel and dimed to death on fees, like every other business. Some industries are hit worse than others due to inherent risk (statistics of fraud) but even then fees are exaggerated.

There are some great processors out there that are very honest and up front, with full disclosure. However, the majority pull all kinds of stunts to gouge the merchant every penny possible.

Coded Billing

One of the worst culprits is coded billing. RBS (Retriever) is notorious for this. They blatantly use an obscure, 4 (or more) character code to represent a specific card type so that you have to look up each one on a legend, as if you were literally translating a foreign language.

Flat Rate Billing

Although this is obviously plenty simple, it is simply a rip off. Processors costs are variable according to almost 100 card types, so there is no way to charge a single rate for all transactions, and yet some due. This would be like a restaurant charging smorgasbord buffet prices for all patrons, even those who just want a coke!  Processors don’t set rates to lose money obviously!

Tier Billing

If your statement lists Qualified, MidQual or NonQual fees, you have Tiered billing and should refer to my Tier Billing Tricks of the Trade here.

Obscure Abbreviations

There are about 38 types of Visa cards, 44 MasterCards, a dozen Discover cards, and a few Amex, each with individual rates derived by risk statistics.

These individual rates are collectively called Interchange and can be found on the websites of the respective Association. Also see my glossary here.

These are your first line of defense:

Visa Interchange

http://usa.visa.com/merchants/operations/interchange_rates.html

MasterCard Interchange

http://www.mastercard.com/us/merchant/support/interchange_rates.html

Discover Interchange
Discover does not list card rates, call them at 888-DISCOVER or email me.

American Express

Amex keeps much to itself and does all their own processing. Therefore, they set their own rates according to each of their merchants. To understand and negotiate for better rates and service, contact them directly at 800-528-5200

If you’ve found some nasty, convoluted tactics, do add yours!
(just blackout your merchant ID number)