Hidden Fees Of Online Payment Processors
Did you know that some payment processors are in the habit of hiding certain fees? If your customers use premium/reward cards or your company doesn't meet minimum monthly transactions, you could be shelling out more in payment fees than you bargained for. Here's what you need to know about the hidden fees charged by some popular payment processors – but not PayPal.
You shouldn’t have to create complicated spreadsheets to figure out which payment processor is giving you the best rate. And with some payment processors hiding fees, you need to be very careful in assessing how much a transaction is actually going to cost your business.
Some processors charge higher rates, up to 3.9%, for the premium cards that your customers prefer. Say your customer wants to use their frequent flyer or corporate card; you may get hit with a different rate vs. the originally advertised 1.9%.
Some processors don’t disclose what their monthly minimum process requirement or fees are. These fees can typically run $20-$35 per month if you don’t meet the minimum transaction volume. That means you’ll be penalized if you don’t meet a volume target.
Some processors charge a monthly statement fee, whether or not you are mailed a paper statement.
Finally, if you opt to cancel once you recover from the sticker shock of that first bill, you can be hit with a huge cancellation fee because you signed a multi-year agreement to get that “great deal.”
The bottom line
PayPal has no hidden fees – we tell you right up front how much you will expect to see on your first bill so there’s no invoice shock. Plus, we will work with you as your business grows and be your advisor for all areas of your growing online business.
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