To breakdown the costs associated with transaction processing and show you how many “hidden” fees can be found,here is an example of a “typical” processing statement.

First, please note the competitive discount rate of 2.2 % as shown in item 1. Then, conduct a simple calculation to figure out the discount fee as shown in item 3 compared to the sales as shown in item 2. Now, have a look at the ACTUAL amount deducted from the account as shown in item 4: $23,587.67 versus the $14,500.96 our stated discount rate should have cost… this represents $9,082.71 IN HIDDEN FEES or a true processing rate of 3.58 %, not 2.2%.

There are several reasons for these additional HIDDEN fees:

• Multiple tier fee structure: in other words, different rates apply to cardholders throughout the country, overseas, specialty, affinity or corporate credit cards (Mid-qualified and Non-qualified cards).
• Gateway Fees: the account was charged $0.10 for the authorization and $0.10 for the capture, ADDING AN ADDITIONAL $0.20 in hidden transaction fees.
  

Other resources for Credit Card Merchant Accounts