28/07/2026
Inside Merchant Services | Week 1
Don’t Judge Your Processing Costs by the Percentage Alone
A lot of business owners look at one number when reviewing their payment processing: the advertised rate.
They may see a rate such as 2.5% or 2.9% and assume that tells them exactly what they are paying. In reality, the percentage is only one part of the total cost.
A merchant statement can include several additional charges that may not stand out at first glance. Some are legitimate costs tied to the equipment or services a business uses. Others may be unnecessary, overpriced, or difficult to understand.
Here are some of the most common fees business owners should look for:
PCI compliance fees: PCI compliance refers to the security standards businesses are expected to follow when accepting card payments. Some processors charge a monthly or annual fee for compliance tools, questionnaires, security scans, or support. A business may also be charged a separate non-compliance fee if the required steps are not completed.
Software or SaaS fees: SaaS means “software as a service.” These fees may cover access to a POS system, reporting dashboard, inventory tools, online ordering, employee management, invoicing, customer management, or other cloud-based features. These charges can be reasonable, but business owners should make sure they are actually using the software they are paying for.
Hardware fees: A processor may charge for a countertop terminal, mobile reader, cash drawer, barcode scanner, receipt printer, tablet, or complete POS system. Hardware may be purchased, rented, leased, or provided through a monthly placement fee. It is important to understand whether the equipment will eventually belong to the business or must be returned.
Gateway fees: Businesses that accept online, keyed-in, invoiced, or virtual terminal payments may pay for a payment gateway. The gateway securely connects the business’s software or website to the processor. These fees may appear as a monthly charge, per-transaction charge, or both.
Monthly service fees: This is a general account fee that may cover customer support, statement delivery, account maintenance, reporting, or processor access. The name can vary, so it is important to look beyond the wording and understand what the charge actually includes.
Batch fees: At the end of the day, many terminals or POS systems send a batch of completed transactions for settlement. Some processors charge a small fee every time a batch is closed. It may seem minor, but daily charges add up over the course of a year.
Statement fees: Some businesses are charged for receiving paper statements, electronic statements, or detailed monthly reporting. In certain cases, this fee overlaps with other monthly service charges.
Annual fees: These may appear once a year and can easily be overlooked because they are not part of the normal monthly total. They may be labeled as membership, maintenance, regulatory, or account renewal fees.
Transaction and authorization fees: In addition to the percentage charged on each sale, a business may pay a fixed amount for each transaction or authorization attempt. Small-ticket businesses should pay close attention to these charges because the per-transaction fee can have a major effect on the overall cost.
Chargeback fees: When a customer disputes a transaction, the business may be charged a fee whether it wins or loses the dispute. Some providers also charge extra for chargeback alerts, retrieval requests, or management tools.
The most useful number is not always the advertised rate. It is the business’s effective rate, which compares the total amount paid in processing costs with the total amount processed.
That is why the full statement matters.
Two businesses can have the same advertised processing rate and still pay very different totals depending on their software, equipment, transaction volume, average ticket, card types, and additional fees.
A good statement review should explain each charge in plain English and help the owner answer three basic questions:
What am I paying?
What am I receiving for it?
Is there a better or simpler option for my business?
You do not need to switch processors just to benefit from a statement review. Sometimes the best result is simply gaining a clearer understanding of where your money is going.
At Soltis Merchant Services, I offer free statement reviews with no pressure and no obligation. I will walk through the fees, explain the total cost, and help you understand whether your current setup fits your business.
