Charged fees that weren’t in your contract?

Which merchant processing fees can you dispute?

Any charge that is missing from your agreement, or that does not match what you were told before signing, is worth a second look. Processors bill under many names. A fee schedule and a year of statements, side by side, show the real picture. Common examples include:

Statement fees

a monthly charge for producing or sending your statement.

PCI non-compliance fees

a charge added when the processor says you have not validated PCI compliance.

Early-termination charges

a fee for closing the account before the agreement’s term ends.

Interchange markups

what the processor adds above the card networks’ interchange rates.

Monthly minimums

a top-up charge when your processing fees fall below an agreed floor.

What is a PCI non-compliance fee?

It is a charge some processors add, often monthly, when they say your business has not shown that it meets PCI DSS. That is the card industry’s data-security standard, set by the PCI Security Standards Council. Some processors also charge a separate PCI program fee, even when you are compliant.

Source: PCI Security Standards Council, PCI DSS (opens in a new tab)

How does a PCI non-compliance fee stop?

Usually by validating compliance. Most small merchants complete the Self-Assessment Questionnaire that fits how they take cards, and pass quarterly scans if their setup requires them. The answers usually go in through the processor’s PCI portal. Keep proof of every submission, with the date.

A fee charged after you validated, or one your agreement never disclosed, is worth disputing. So is a fee that kept running because the portal never recorded what you sent.

What about early-termination fees?

Generally, an early-termination fee is owed only if your agreement provides for it, and its formula sets the most it can be. Whether it is enforceable as written can also be a question. Check the term, the renewal clause and any notice you had to give. A fee that grew through automatic renewals you were never told about deserves a close look.

How do you dispute processing fees?

I start with the numbers, because a fee dispute rests on them. As a CPA, I read processing statements the way an auditor would. Every line gets traced back to the agreement, the fee schedule and the pricing you were quoted before you signed.

What I do

• Review the agreement and every monthly statement, line by line.
• Total the charges that go beyond the agreed terms, and the period they cover.
• Demand repayment and an end to the charges, and escalate if the processor refuses.

How long do I have to challenge a fee?

Start with your agreement. Many merchant agreements require you to raise statement errors within a short window, and the law sets outer limits. The longer a fee runs unchallenged, the harder the earlier months can be to recover. If you have spotted a charge you do not recognize, act now.

What to bring to the first call

A first call goes further when I can see the paperwork. These documents show what you agreed to pay, what you were actually charged, and since when. Send what you have; gaps are normal, and I can tell you what else would help.

• Your merchant processing agreement and any fee schedule or addenda
• Any written quote or pricing you were given before you signed
• Your last twelve months of processing statements
• Your messages with the ISO, processor or acquiring bank