Often, businesses are blindsided by hidden fees. These fees are usually buried within the fine print of their payment processing agreements and can seriously impact a merchant's net profit, leading to controversial disputes. If you own a business and hidden fees have negatively affected you, our competent merchant processing litigators can help. Contact Sigal Law Group today for a free consultation.
What are Hidden Fees?
Hidden fees can take several forms in merchant processing, such as surcharges, convenience fees, and non-cash adjustments. These fees are not clearly disclosed upfront, which forces businesses to pay unexpected costs down the line.
The most common kinds of hidden fees include:
· Interchange fees are fees set by card networks like Visa and Mastercard. They can vary based on the card type used and the transaction's nature. These types of fees are standard, but some processing companies will add additional markups without clearly disclosing them to the merchant first.
· PCI compliance fees: Some processors charge excessive fees without justification to ensure compliance with the Payment Card Industry Data Security Standard.
· Early termination fees: These fees penalize merchants for switching processors before the term of the contract ends.
· Monthly minimum fees: Some payment processing companies require merchants to meet a minimum monthly transaction volume or be charged a fee to make up the difference.
· Junk fees: These are miscellaneous charges for things like statement fees, batch fees, and customer service fees.
How a Merchant Processing Litigator Can Help
While hindsight is 20/20, it is important to mention that the best way to avoid a dispute over hidden fees is to thoroughly review the payment processing contract before signing it. That way, if you are worried about the terms, you can bring the contract to your trusted merchant processing attorney for further review. Your merchant processing attorney will let you know if the agreement includes any hidden fees, what they are, and when they might take effect, giving you peace of mind and the power to negotiate the terms.
However, if you did not see mention of these fees in your agreement when you signed it, your merchant processing litigator will help you pursue legal action against the payment processing company. You should not have to pay for unjustified fees. Contact Sigal Law Group today for a free consultation.