Most merchants accept the fact that payment processing comes with a cost. That said, when was the last time you took a closer look at your monthly invoice? If it’s been a while, you may discover that you’re significantly overpaying for this service. Payment processors can hide and inflate their fees in many ways, and not many merchants know what to look for.

Not sure if you fall into this group? Here are six common signs that you’re paying too much to accept credit cards and what you can do to fix these issues!

1. Non-Qualified Rates

If you see the word “non-qualified” anywhere on your monthly statement, you’re almost certainly overpaying for credit card processing. That’s because this term only applies to bundled or tiered merchant agreements, where the non-qualified rate is the highest rate for each transaction. Your processor sets these rates arbitrarily, so it may be time to look into other options.

2. Incorrect Account Setup

There are plenty of ways to set up your merchant account incorrectly, leading to higher fees. For instance, putting in an incorrect merchant category code (MCC) may cause your business to be misclassified into a higher-risk category. You may also have unoptimized payment processing settings, which can incur additional fees. Make sure your account is set up properly.

3. Flat Transaction Fees

In theory, flat-rate processing sounds good because you always know what it costs to process a credit card. Unfortunately, flat-rate processing is flat-out more expensive than interchange-tier pricing. In some cases, a flat-rate deal may lead to paying over 2% above interchange for most transactions. Consider which pricing model makes sense for your merchant profile.

4. Lack of Transparency

Lack of transparency has always been one of the key issues plaguing the payment processing industry. As mentioned, many processors don’t fully disclose their fee structures, making it harder for businesses to compare their options. If you don’t have a clear understanding of the complexities of payment processing, consider hiring a payment consultant.

5. Equipment Leasing

Leasing your processing equipment rarely makes sense. Though this option comes with a smaller upfront cost, you’ll likely end up paying hundreds or thousands more than you would have paid by buying the machines right away. If you’re currently leasing equipment, do what you can to get out of the lease and buy your own equipment as soon as possible.

6. Lack of Negotiation

Payment processing fees usually aren’t set in stone. Businesses that have a strong credit history or high transaction volumes can usually negotiate better rates with their processor. Unfortunately, many merchants seem to be unaware of this fact or simply underestimate their bargaining power. Talk to your processor to see if you can eliminate unnecessary fees.

Ready to Stop Over-Paying?

Don’t let hidden fees and complex pricing structures continue to erode your business’s profitability. At MONA Payment Solutions, we’re committed to transforming your payment processing from a cost center to a strategic advantage. Our expert team specializes in uncovering hidden fees, optimizing your processing rates, and ensuring you’re not overpaying for critical financial services. 

Don’t leave money on the table—schedule a complimentary payment processing audit with us today and discover how we can help maximize your business’s profitability.