COVID-19 Checklist for Reviewing Merchant Services Statements
The global outbreak of coronavirus continues to evolve. With it, industries like merchant services respond to unprecedented times. Some merchant service companies seek to offset decreased volume with hidden fees.
For example, card risk and fees fluctuate with more people using prepaid unemployment cards and living on credit. We also notice a global shift in acceptance environments. We all must accommodate mobile ordering, contact-less and e-commerce to survive, but at what cost?
To analyze your merchant services statement, you can follow our simple checklist to uncover unnecessary costs. We also encourage you to consult with a merchant service professional to get a third-party and objective perspective on your fees and potential gains.
Reviewing Your Merchant Services Statement Checklist
Before you seek out new merchant services, get a copy of your merchant statement. Here is how to review this document, looking for the most general and basic insights about how your merchant services company serves your account.
- Start with percentages per item and card types.
Notice how your percentage fee changes per transaction based on these card types. Are there any changes in the ratio of card types that you should address with your provider?
- Proceed to look at downgrades for online purchasing.
Your provider can change terms at any time, and perhaps they’ve applied new conditions for the increase in online purchasing. Downgrades can seriously affect how these transactions are charged.
- Pay attention to prepaid cards in particular.
Millions of Americans are now using prepaid cards issued by their state unemployment program. These cards fall under a risk classification that makes them costly.
- Analyze the impact of mobile and online ordering.
How we interact with customers is in flux, and new technologies need to rise to the occasion. Make sure that you’re not paying a massive amount for access to virtual and mobile terminals.
- Check whether there is a notice of a change in terms.
You may not realize that your account has been sold to another provider. Your merchant services company doesn’t always have to notify you. You may discover you deserve a better rate.
As you look into your merchant services statement, it might be time for a change if:
- Card type changes result in disproportionate fees.
- Downgrades for risk and penalties plague your statement.
- You’re paying an unreasonable amount to honor reward cards.
- Terms and conditions have changed without your notice.
By conducting this review, you’ll discover average savings because you can learn to price and negotiate items another way. Small changes to percentage points and fee structures can increase your revenue, especially during periods of change.
Consult with DataFi
You’re likely to have discovered the potential to save by reviewing your merchant services statement or seeking a new provider. This change makes sense during economic changes and reflection afforded by unforeseen changes in business.
A professional should review your statement with expertise about how to change services to meet challenges and business goals. A third-party with an inside understanding of merchant services is needed for a full review.
We offer a free consultation on your merchant services statement to help you understand and plan for improvement. Contact DataFi today to get started.