Merchant account fees for retail
Every card sale costs a retailer a fee, and the statement that explains it is hard to read. This page explains how a merchant account fees review applies to a retail business, from a single store to a chain with an online store.
Why this matters for retailers
Retail depends on cards. Customers pay in the store, online, by phone and through gift cards, and each channel is priced differently. Fees are charged on many small transactions, so the total is spread across lines that are easy to skim past.
A card statement has layers. The card brands set interchange fees. The processor adds its own fees on top. A review separates the layers so you can see which part you can negotiate and which part you cannot.
What a review typically examines
A partner firm reads your processing agreement and several months of statements. For a retailer, it looks at the following.
- Pricing model. Which pricing arrangement your agreement sets, and whether the statement matches it.
- Card mix. In-store transactions with the card present usually cost less than online or keyed ones. A review checks whether sales are being classified as costlier than they should be.
- Downgrades. Transactions that fail to meet a requirement, such as settling late or leaving out address data, can be charged at a higher category.
- Chargebacks and refunds. Fees on disputed sales and on returns, and whether refunded sales are handled as expected.
- Fixed and incidental fees. Monthly minimums, statement fees, gateway fees, terminal rental and compliance-related fees.
- Multiple locations. Whether every store account is on the same terms or whether older accounts kept old pricing.
- Seasonal volume. Retail sales spike around holidays, so a review compares terms against peaks as well as average months.
Tip: Terminal rental agreements often run on their own contracts and can be hard to end. Bring them to the review. [CONFIRM: a partner firm supplies and approves this statement]
What to have ready
- Your merchant processing agreement and any amendments.
- Recent monthly statements for every merchant account.
- A list of locations and terminals, owned or rented.
- Terminal lease or gateway agreements.
- Notes on how you take payments: in store, online, mobile or phone.
- Records of chargebacks you have received.
- Contacts in finance and in your payments or e-commerce team.
Gift cards and returns deserve a note. A retailer sells gift cards, accepts them as payment and refunds purchases, and each of these moves money in a way that can affect fees. Tell the firm how your point of sale handles them.
What happens after you submit a request
A partner firm contacts you after you submit a request, and you share your statements. The firm explains what it found. Some firms in this area work with your existing processor and some propose a change. Which approach a firm takes is for that firm to confirm. Fees and terms of the engagement are set between you and the firm, and you are not asked to decide anything before you have seen the findings.
How matching works
Fairview connects you with a partner firm and does no review work. Your size decides which type of firm suits you, and Fairview matches each request by hand rather than by a fixed cut-off. Use the larger business form, the smaller business form or the other form.
An independent partner firm that specializes in merchant account fees handles this work. Fairview Audit makes the match. We do not perform the review ourselves.Who does the work
Frequently asked questions
Do we have to change processors?
Not necessarily. Firms of this kind let you keep your existing processor. What the review finds is a separate question.
Can a review cover our online store?
It can if your online sales run through a processor you can share statements for.
Will customers notice anything?
Any change is agreed with you first, and you decide whether to act.
Related pages
Tell us what you need reviewed. We match you by hand with an independent partner firm. You keep your existing vendors.Find out what you are overpaying.