Before You Swipe That Card: Do You Know What Fees You're Paying?
By Bob Carr Chairman & CEO, Heartland Payment Systems | February 13, 2010
Every time you swipe a guest's credit card, your hotel is charged with transaction fees. Since most of your bills are likely paid by credit card, the amount you pay in these fees are substantial. Yet, do you understand what you pay and properly manage that expense?
If you are like many hoteliers, you may not drill down into credit card processing costs - first because you may not have the time, and second because the statements you receive from your payments processor are probably very confusing. If you take a good look at your statements, you will discover that fees vary wildly based on the type of card used and can reach as high as 5% on each payment.
That may be because every transaction is passing through up to 12 middlemen, each of whom tacks on its own processing fee. Then, there are the hidden fees, penalties and questionable business policies that many card processors bury in the fine print. The end result is you may be paying more per transaction than you have to.
The Merchant Bill of Rights is a set of industry standards designed to promote fair credit and debit card processing practices. The primary objective of this advocacy initiative is to educate business owners and hoteliers like you so you can effectively manage the complexity and cost of card acceptance.
First and foremost, The Merchant Bill of Rights focuses on your right to transparent business practices. Too often, business owners pay for card processing without knowing what is really happening behind the scenes. Let's drill in to some of the transparency issues The Merchant Bill of Rights targets - starting with middlemen.