A few weeks ago, The Wall Street Journal broke the news that two of the major credit card brands, Visa and Mastercard, plan on raising their fees this coming April. The rate hikes will reportedly include an increase to interchange fees and assessments that go to the card brands themselves.
As this Reuters article on the rate increases explains, merchant banks (aka payment processors) are the ones that ultimately decide whether to pass on those rate increases to their merchants. Most payment processors take advantage of events like this, not only by passing on the rate increases but also by significantly marking up those rate increases to make even more money off their merchants. Along with junk fees such as statement fees, batch fees, monthly minimums, PCI fees, and terminal fees, it’s another way that processors typically ratchet up rates on businesses over time.
SpotOn, of course, never charges any junk fees and we are committed to being transparent and affordable with all of our rates. That being the case, SpotOn will not be marking up any of the April 2019 rate increases for our merchants. Furthermore, we will not even pass on some of the rate increases levied by the card brands at this time.
“SpotOn is different from other payment processors out there,” SpotOn co-founder Zach Hyman commented on the announcement. “For one, we are way more than just a payment processor, with a growing product line of high-value software that helps our merchants run and grow their business. On top of that, we are 100% committed to putting money back into our merchants’ pockets.”
Is your business paying too much with a different payment processor? Get your free SpotOn Demo and one of our specialists will help you analyze your current rates and see how we can put more money back into your pocket.