Q) Ugh! I hate contracts. Why are there so many hidden fees in credit card processor contracts?
A) Read any invoice from just about any vendor – your wireless provider, the cable company or your utilities and you’ll see them: fees. Often, they are hidden in plain sight as line items or as confusing “terms of service” changes.
Some fees are very reasonable — they cover the cost of doing business and your shared risk of processing stolen or bogus credit card numbers.
Annual fee. Monthly fee. Minimum fee. Access fee. Line charge. Start-up fee. Maintenance fee. Processing fee. Programming fee. Katherine McPhee. While some of these fees are imposed by state and local governments, others are pure and simple profit centers for the banks, the credit card companies, your broker and everyone in between.
Ask for an official “explanation of fees” before you sign your contract. Many of these can be negotiated away. By asking “why” you just might be able to X out some useless charges.
