Businesses Across USA are paying too much to process credit cards

In 2007, businesses in the U.S. paid over $60 billion dollars for the privilege of processing credit cards. This is a staggering 133% increase since 2001. Not only are more people and business clients using credit cards and bank cards to purchase items, the average cost per transaction is steadily rising. Just in 2008 alone, the two major credit card companies each enacted significant increases to business owners.

What does the typical business do about this? Many go out and solicit quotes. Many have competing processing companies "analyze" their statements to see if they have a good rate. Some call their current vendors and ask for a lower price. What all of these methods of cost control lack is the necessary knowledge to truly know what a competitive cost is. Sure, you can compare with your buddies that own businesses, but they often are in a completely different business model and the rates they receive have no bearing on your business.

Most credit card processing statements are filled with a dazzling array of fees, cost categories and charges. For a great majority of business owners, the reasons behind these charges are not readily known. The typical business owner, CFO or Controller does not have the time to understand one of the most convoluted billing structures ever devised. Credit card processing is one of the most complicated and least understood invoices that any business ever pays.

The beauty of the credit card processing business is that no one ever has to "pay" for the charges that are assessed them. Business owners nationwide trust their processors so much that they allow the processors to pull the money direct from your bank account before they send you an invoice. What if there is a mistake? Will you catch it? What if certain categories of charges were wrongly categorized into the wrong billing rate, costing your business thousands of dollars? Would you know? Is your rate for a specific type of rewards card competitive? Is the fees you are paying for each transaction the same, better or worse than your competitor?

Despite having a convoluted billing structure, the merchant account processing business is fairly simple. The credit card processors simply take the rate that they have to pay the major credit card companies and then add a profit to themselves. Do you know how much profit your credit card processor is making on your business each month? Do you want to know?

In most transactions that you undertake within your business, you have a general idea of what the profit margins are for your vendor. In the credit card processing industry, that knowledge is known by very few businesses.

The facts above are the reason that Financial Mitigation Services (FMS) is in business. Financial Mitigation Services helps business clients across the country uncover excess fees and overcharges on their credit card processing costs.

FMS is not a credit card processor. We are an independent expert with over 20 years of executive level experience in the credit card processing industry. We help our clients put specifc plans in place with their current processor to achieve the lowest possible costs in this industry.

Do you know how if your business is paying excess fees or overcharges that are not necessary? Call FMS to find out - 1-800-797-5642