Β In the world of card payments, there are often things that seem too good to be true β and sometimes they are! We’ve uncovered some secrets of the trade that every merchant should know about:
- Hidden Charges: It’s a common tactic for providers to offer seemingly “free” services like next-day settlements or PCI compliance. However, what they don’t always tell you is that these perks often come with a catch β a Minimum Monthly Service Charge (MMSC). This sneaky fee can add up to Β£25 or more per month, eating into your bottom line without your even realising it.
- Cancellation Fees: Many providers entice customers with promises to cover their cancellation fees β up to Β£3000 in some cases. But don’t be fooled! The devil is in the details, and you’ll often find buried in the terms and conditions that you’ll only be reimbursed after fulfilling your contract term. This means if you decide to leave early, you could be left footing the bill for your own cancellation.
- Paper Statement Charges: In this digital age, it’s surprising how many providers still charge for paper statements β around Β£4 per month on average. If you’re being charged for something you don’t need, like physical statements, it’s worth cancelling this service to save yourself some money. Most statements can be accessed online for free, so don’t pay for something you don’t use.
- Merchant Portal Fees: Another sneaky charge to watch out for is the monthly fee for accessing a provider’s merchant portal. Some companies charge as much as Β£15 per month for this privilege, but it’s often something that should be included as part of your package. Don’t pay extra for basic functionality that should come as standard.
- EPOS Integration: Some providers tout free integration with compatible tills as a selling point, but in reality, this should be a standard feature, not an added bonus. If a provider is trying to sell you on something that should be included anyway, it’s worth questioning their motives and looking elsewhere for a more transparent service.
- Scheme Fees: Always be sure to ask whether your pricing includes scheme fees. These fees can vary depending on the provider and the type of cards you accept, so it’s important to factor them into your overall costs. Paying scheme fees separately can often result in higher overall costs, so make sure you’re getting a clear and transparent quote upfront.
- Upgraded Card Machines: Be cautious of providers offering “free” upgrades to card machines that include features like WIFI and 4G SIM cards. While these upgrades may seem like a great deal, they often come with hidden costs that are reflected in your terminal rental charges. Make sure you understand the full cost implications before agreeing to any upgrades.
- Secure Transaction Fee: Some providers may try to sneakily charge you a “secure transaction fee” under the guise of enhancing security. However, in reality, this fee is often just another name for an authorization fee imposed by processors. Always scrutinise your bills and question any unexpected charges to ensure you’re not being taken advantage of.
- Mis-Sold Contracts: Finally, if you notice any charges on your statement that you weren’t pre-advised of or weren’t made aware of at the time of signing your contract, you may have been mis-sold. In such cases, you have the right to cancel your contract without penalty and seek a more transparent provider.
By understanding and being aware of these industry secrets, you can navigate the world of card payment services with confidence, ensuring that you’re not caught out by hidden fees or misleading offers. Remember, knowledge is power β so arm yourself with information and make informed decisions for your business’s financial health and success.
