The payment processing industry doesn’t exactly have a reputation for transparency. For years, pricing figures have been incomplete, inaccurate, or unorthodox — not only for merchants, but also for salespeople selling to the merchants.
How did confusing pricing become a habit in the payment processing industry? Many providers rely on legacy technology systems that are inherently limited with respect to itemizing and describing fees. Further, many providers compete only on the basis of price because they don’t have anything unique to offer. They have outdated technology and mediocre service, so they focus on price. This approach has led to reduced pricing throughout the industry. And while lower prices are generally good for customers, they lead to undesirable pricing behaviors.
Processors often use confusing billing tables to upcharge merchants that aren’t as sophisticated as some big-box stores and don’t have the time to dig into statements and compare them to interchange tables.
Read the full article on Payments Source here.
