How Payment Processors Quietly Increase Fees—And How to Stop It
Most businesses assume that once they’ve negotiated their payment processing rates, those rates stay the same. But payment processors regularly increase fees behind the scenes, often without businesses noticing. These small increases add up over time, quietly eating into profits without raising red flags.
If you’re not actively monitoring your processing statements, you’re likely paying more than you should. Here’s how processors increase fees, what to watch for, and how businesses can fight back.
1. How Processors Sneak In Hidden Fee Increases
🚨 Rate Increases Disguised as “Network Adjustments”
Processors often send notices about "mandatory" Visa, Mastercard, or Amex network fee adjustments—but not all of these are legitimate. Some processors increase their own markups at the same time, making it seem like an industry-wide fee when in reality, only their customers are paying more.
🚨 Downgraded Transactions That Inflate Interchange Fees
If transactions don’t meet specific criteria (like missing AVS data, incorrect settlement timing, or not qualifying for Level 2/3 processing), they are downgraded to a higher interchange category. This can silently increase per-transaction costs without the business realizing it.
🚨 Monthly & Statement Fees That Start Small and Grow
Many processors add small, extra fees labeled as "PCI non-compliance," "account maintenance," or "technology fees." These charges often start low and increase gradually, making them easy to overlook.
🚨 Chargeback & Risk-Based Fee Adjustments
If your business receives more chargebacks than normal, your processor may increase per-transaction rates, add reserve requirements, or implement rolling fund holds—even if the disputes weren’t your fault.
💡 Without close monitoring, these quiet fee increases go unnoticed—costing businesses thousands over time.
2. How to Stop Processors from Raising Your Rates
✅ Audit Your Processing Statements Every 3–6 Months
Look for any changes in per-transaction rates, additional fees, or new charges.
Compare past statements to identify fee increases over time.
✅ Negotiate Fee Caps & Rate Lock Agreements
Many processors will agree to lock in pricing if they know you’re monitoring closely.
Ask for an interchange-plus pricing model with clear, transparent markups.
✅ Ensure Transactions Qualify for the Lowest Possible Interchange Rates
Use Level 2 & 3 processing for B2B payments to qualify for lower rates.
Avoid transaction downgrades by ensuring all necessary data (like AVS and CVV) is included.
✅ Monitor Chargeback Ratios to Prevent Processor Penalties
If your chargeback ratio is rising, take steps to reduce disputes before your processor increases your rates.
Implement chargeback alerts and fraud detection tools to prevent costly disputes.
💡 Most businesses don’t realize they can negotiate with their processor or take proactive steps to lower their rates.
3. How PlutosPay Helps Businesses Prevent Hidden Fee Increases
At PlutosPay, we help businesses monitor, negotiate, and optimize their payment processing setup to:
🔹 Catch hidden fee increases before they impact profitability.
🔹 Negotiate lower processing rates and ensure fair pricing.
🔹 Prevent interchange downgrades that result in higher transaction costs.
🔹 Optimize chargeback management to prevent unnecessary rate hikes.
💡 The result? More savings, better pricing, and full transparency over processing costs.
4. Key Takeaways
✅ Payment processors quietly increase fees over time, costing businesses thousands.
✅ Hidden rate increases, interchange downgrades, and extra fees are common tactics.
✅ Businesses should audit their processing statements every 3–6 months to catch changes.
✅ PlutosPay helps businesses lower costs, prevent overcharges, and negotiate better processing terms.
💰 Want to make sure you’re not overpaying? Let’s talk.
Conclusion: Businesses Need to Watch Processors Like a Hawk
Payment processors increase fees quietly, knowing most businesses won’t notice. By staying proactive, monitoring statements, and negotiating better terms, businesses can avoid these hidden costs and keep more of their revenue.
At PlutosPay, we help businesses audit, optimize, and reduce payment processing expenses—without disrupting operations.
📩 Contact us today for a free processing audit.