Bucket/Numeric Billing
Processors use self-invented terms like Qualified, Mid-Qualified and Non-Qualified, they also use Generic Numeric System such as 1201, 1507 etc., vs. true interchange categories. Part of this game is to entice [...]
Puzzle Billing
The processor offers a low rate and then adds lots of little fees. Merchants are under the illusion that they have a low rate until they see the impact of what a [...]
Padded/Enhanced Billing
The Processor hides additional surcharges in with the downgrade surcharges, adding another .50%-.65% on average, making it impossible to spot unless [...]
Bundled Billing
Processors bundle their Discount Rate (aka their markup), which is a negotiable and variable fee with [...]
Pocketing Refunds & Rebates
Refunds-On returned sales, the credit card networks give an interchange credit to the processor. This money should be [...]
Rebates-Some transactions clear at a higher rate (like Rewards Cards and certain Business Cards), which causes the networks to add an extra fee called a “Downgrade.”And some transactions clear at a lower rate (like Debit Cards and some Corporate Cards), which results in a rebate from the networks. But again, most merchants [...]
Undisclosed Volume and Partial Line Item Billing
These are the most dangerous and one of the most common unethical billing practices used. Merchants that are a victim of this billing tactic have no idea that they are [...]