If you’ve ever felt overwhelmed by the complexities of payment services & mastering merchant fees, you’re not alone. Many operators view these services as a dark art, but the truth is, there are straightforward strategies to audit your billing and reduce those daunting credit card expenses. In this ConStrata Minute, listen to Toby as he discusses some  practical steps that can help you become a more informed merchant and save on costs.

One of the key topics mentioned is the Durbin Amendment, a regulation signed into law in 2010. This amendment requires dual routing opportunities in the US for debit cards, offering alternative networks like PIN networks. By specifying the rails for processing your debit cards, you can save a few pennies on each transaction. Networks such as Star, Nice, or Pulse are low-cost options worth considering.

Another crucial area to focus on is auditing your monthly bill for software products or services charges beyond actual processing fees. These legacy charges might have been on your bill for years, and in many cases, they are no longer necessary. It’s the merchant’s responsibility to identify and request the removal of these charges. Our experience shows that many clients have been paying for services they never needed or asked for. So, be vigilant and don’t hesitate to question any unfamiliar charges.

Lastly, we emphasize the importance of not signing long-term credit card agreements without thorough evaluation. While transitioning from one processor to another might seem daunting, the potential cost savings can make it worthwhile. Avoid falling for tactics like “send me the last month’s bill, and we’ll beat it.” Instead, provide a few months of volume data by card type and transaction nature, and then request a quote. This approach empowers you to conduct your own evaluation and identify significant savings opportunities.