Decode the Hidden Fees in Your Payment Processing Statement

Hidden Fees

From committing to live a little healthier, to vowing to finally start budgeting for that dream home, the new year is usually an occasion for clean slates and good intentions. However, for some dishonest payment processing providers, it can be a time for sneaky rate increases without notice. For many processors, this is part of their business model—adding hidden fees here and there so the merchant doesn’t notice.

At Beyond, we promise to never arbitrarily increase your rates without providing an additional service. We will protect your pricing and fully disclose charges and fees. And we don’t just promise it—we put it in plain print, so we are legally bound. Our commitment to transparency means you always receive clear billing statements—but we understand that decoding other statements can be difficult.

While there are legitimate costs associated with payment processing and data security—often passed on by the card brands (Visa, Mastercard, Discover, American Express)—many companies take advantage of this model to hide illegitimate fees from their customers. Dishonest merchant processing companies include junk fees in their statements that mirror this structure and seem highly technical—making them hard to question. If you’re wondering if you’ve fallen prey to indiscriminate fee increases, here are a few terms to scan your statement for.

 

Miscellaneous Fees:

Miscellaneous fees can serve as a catchall for fees processors charge in addition to processing fees. They may be a one-time or monthly fee, but you should know the cost of these ahead of time. If they increase, inquire what additional service is being provided. Just because the calendar year has shifted, doesn’t mean your fees should be increased.

 

PCI Compliance Fee, Data Breach Insurance, Non-Compliance Fee, Security Fee:

This non-standard fee falls under many different names. The purpose of the fee, no matter the name, is ambiguous and doesn’t usually correspond to a concrete service. A PCI Compliance fee might mean that a processor is charging you to ensure you are PCI compliant, even though processors should be providing this service as table stakes. Some merchants may also be charged a PCI non-compliance fee, if they fail to maintain proper security standards and procedures as outlined by their credit card processor. PCI compliance fees typically range from $35 to $99 per year, while PCI non-compliance fees are commonly around $20 per month. The majority of the time, these fees are junk fees, and you might not even notice they are on your statement.

 

IRS Reporting Fee:

Some payment processors charge a fee to report your transactions to the IRS and provide you with the required 1099-K. This practice isn’t widely accepted in the industry and should be disputed if you see it on your statement.

If you’re uncertain what a fee on your statement is for, always inquire with your processor to find out if a service is being provided that warrants the cost. If your processor is charging a hidden fee without providing a feature or service, you may want to consider working with a processor you can trust.

 

At Beyond, the promises we make to our clients are the pillars of our business and the foundation of our values. We promise to protect your pricing and will never charge additional fees if we don’t provide additional value. Our statements are transparent, and each cost and charging party will always be clearly communicated—we promise.

Payment processing is a vital part of your business, so make sure you understand what service your fees are for. Curious what exactly payment processing entails? We’ve got you covered there too—get the 101 on Payment Processing here

 

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