Breaking Down Hidden Credit Card Fees in Your Merchant Statement

By Robert Skinner | WBN News | July 14, 2025

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Most small business owners know they’re paying to process credit cards — but they don’t always know what they’re paying for. That monthly merchant statement? It’s often loaded with confusing terms and hidden fees.

If you’ve ever wondered whether you’re overpaying, this breakdown is for you.

🧾 Common Hidden Fees to Watch For:

Non-Qualified Rate: This inflated fee applies when a transaction doesn’t meet your processor’s criteria for a lower rate. Often triggered by rewards cards or key-in transactions.
Batch Fee: A small fee charged every time you close out your terminal for the day — typically $0.10–$0.25.
AVS (Address Verification) Fee: Charged when you verify the billing address on a card — even though this protects you.
Monthly Minimum Fee: If you don’t process a certain volume, your processor may charge you to “make up the difference.”
PCI Non-Compliance Fee: This could cost you $20–$50/month if you haven’t completed your PCI Self-Assessment Questionnaire.

💡 What You Can Do:

Request a statement review from a trusted payment consultant or ISO.
Negotiate your fees — many processors mark up interchange rates more than necessary.
Consider flat-rate or subscription pricing models to simplify things.
Read the fine print on your processor contract — you may be able to opt out of certain add-ons.

📄 How Fees Get Buried in Bundled Pricing

If your processor uses a “tiered” pricing model, you might only see Qualified / Mid-Qualified / Non-Qualified charges — but each tier bundles multiple real fees together. This makes it hard to tell what the card brands are charging vs. what your processor is adding on top.

💡 Tip: Ask for an "interchange-plus" statement — it shows Visa/Mastercard base rates separately from your processor's markup.

🧮 Example: A Real Statement Breakdown

Let’s say you processed $10,000 in credit card sales last month. Here’s what your statement might include:

Discount Rate (2.75%) – $275
Batch Fees (30 days x $0.20) – $6
PCI Non-Compliance Fee – $29
AVS Fees (80 online orders x $0.05) – $4
Monthly Service Fee – $10
Regulatory Fee – $3.95

📉 Actual effective cost: $327.95 or 3.27% of total sales — not 2.75% as advertised.

Even small line items add up — and most merchants never spot them unless they dig deep. Understanding your statement is the first step toward lowering your monthly processing costs — and taking control of your bottom line.

Robert is an experienced business systems developer and coach.

"I have openings for News Contributors for the Delta and Richmond Editions" Give me a call at +1 604-220-4750 or connect on LinkedIn: https://www.linkedin.com/in/rlskinner/

WBN News - South Delta Edition

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