negotiate-credit-card-processing-feesWhen you decide to open your business – whether it be small or large—you will have to come to terms with the fact that you will have to pay credit card processing fees. However, you have no idea that dealing with a payment processor can be difficult when dealing with certain charges—sometimes resulting in huge expenses. With consumers carrying less cash around these days, it is impossible to have a successful retail establishment by not accepting credit and debit cards. Accepting credit cards brings big business, with enormous profits for merchants.

Here are a few of the situations your business may encounter when researching credit card processing fees. Knowing about these particular charges in advance can help you ask the right questions, so you can compare offers from various payment processing companies, and negotiate better terms for yourself.

Negotiate Credit Card Processing Fees: Types

The business of credit card processing fees can be confusing at times. The credit card processor will normally offer you two different credit card processing fees: a per swipe fee and a percentage fee. Then, when you get the actual contract, it will include a multi page section detailing all the various credit card processing fees for different kinds of cards. These are important because these days everyone uses rewards cards, so your base percentage fee is not what you will be charged.

Batch Fees and Statement Fees

Many processors charge a fee of about $6-$10 per month to send you a statement. Some also charge a batch fee, which is basically a fee for accepting your sales transmission. If you like to batch out your charges several times a day, this one can really add up. Be sure to compare fees, and choose the payment processor that works best for your business

Cancellation Fee

Say that you don’t particularly enjoy your payment processing service: some payment processors will induce a fee of around $250-$500 if you cancel your contract early. Look for a payment processor that does not include cancellation fees within their credit card processing fees.


For your business, it will cost you money to accept a payment by credit card as well as issue a refund to the same card. In addition, the flat fee within your established credit card processing fees for swiping the card is charged when you swipe for a refund. Incidentally, this fee will also be charged when a credit card is declined. You can expect to pay these credit card processing fees more often times than you have completed credit card sales.

However the percentage fee is not charged on a refund, and, in fact, should be returned to you. The fee will be returned to your processor. Make sure they are forwarding it on to you, and not just keeping it for themselves.

Ultimately, when selecting a credit card processor for your business, it comes down to paying attention, making sure you thoroughly understand the terms of the contract, and understanding your credit card processing fees from top to bottom.