Why Your Processor Will Not Tell You About Lower Rates

By RatesNegotiator Team

Credit card processors have little incentive to proactively offer lower rates. The more a business pays in processing costs, the more revenue the processor generates. This article explores why processors stay quiet about lower rates that businesses may qualify for, how interchange categories work, and what steps can be taken to identify overcharges on a merchant statement and negotiate better terms with the current provider.

Many businesses assume their processing rates are fixed or industry-standard, but the truth is that rates are negotiable. Interchange rates set by Visa and Mastercard are the same for every processor, but the markup added on top varies widely and is almost always negotiable. Understanding this distinction is the first step toward paying less.

What You Can Do About It

The first step is to request a detailed breakdown of your processing costs from your provider. Compare the interchange rates on your statement to the published Visa and Mastercard interchange tables. Any difference between the published rate and what you are paying represents the processor markup, and this is the portion that is negotiable. Armed with this information, you can approach your processor with specific data points and request a reduction. Businesses that negotiate with data-driven arguments consistently achieve better outcomes than those who simply ask for a lower rate without supporting evidence.

If you prefer not to handle the negotiation yourself, services like RatesNegotiator can analyze your statement and negotiate on your behalf, ensuring you receive the lowest rates available for your business type and transaction profile.