4 Payment Processing Traps That Are Eroding Your Profit Margins and How To Avoid Them

Trap 1: Complex Merchant Contracts

One of the most insidious traps in payment processing is the prevalence of hidden fees buried in the fine print of merchant agreements. These fees can include statement fees, PCI Non-Compliance fees, chargeback fees, and more.

How to avoid it?

Thoroughly review your payment processing contracts and agreements, and identify any hidden costs that could eat into your bottom line. Ask questions about any potential fees, and seek transparency from your payment processor.

Trap 2: Early Termination Fees

Many payment processors lure B2B businesses into long-term contracts with promises of low rates or special promotions. However, these contracts often come with early termination fees, which can be costly if the business decides to switch providers or terminate the agreement prematurely.

How to avoid it?

To avoid getting locked into a contract that may not be suitable in the long run, you should carefully review contract terms, negotiate for shorter contract lengths or waivers of early termination fees, and explore flexible alternatives that align with your business needs.