If there is one thing that really bothers me about the credit card processor industry, it is when a company entices a customer with a very low rate, and then works a myriad of hidden fees into the statement so that the customer ends up paying substantially more than they were led to believe. This is a classic pricing trick in the industry.
This, more than any other reason, is why the payments industry has developed a bad reputation. It’s too bad because it doesn’t have to be this way, and it did not used to be the case, especially not in Canada where flat rate pricing used to be the norm.
Before digging into the gritty details, I hope that it goes without saying that at Merchant Accounts.ca we don’t do this. For 10 years our tag line has been clear and honest pricing. We’ve worked hard to build our brand, and being known as a merchant friendly processor has been paramount to our success. It’s why as a payment gateway company we take this topic very seriously. When reading this article you should understand that this is not meant as an attack on any processor. We are not the only honest processors in Canada. There are a bunch of hard working and honest folks working in Canada’s payment industry.
Unfortunately, there are also companies out there that do pricing tricks all the time. In particular, it seems to be companies that run large call centers. They seem to play a numbers game where if you call enough people, some folks will bite without really understanding what is being offered, and that is when hidden fees are snuck in.
As a competing processor, all we can do is educate and inform merchants of these problems, and hopefully help them to prevent it from happening to them.