Complexities of Card Acceptance Baffle Many Merchants

Many small and mid-sized business owners don't understand credit/debit/prepaid card processing costs, the fees and surcharges they pay, and how these charges impact their bottom line.
That's according to a recent survey conducted by supporters of The Merchant Bill of Rights. The Merchant Bill of Rights is proposed as an industry standard to inform and educate business owners about card processing costs and drive savings for small and mid-sized businesses.

Nearly 400 merchants nationwide voluntarily responded to the survey. Findings indicate:

• Only 26 percent of participants believe they are being treated fairly by the debit/ credit/prepaid card processing industry.
• Only 32 percent understand unfair card processing practices and how they impact their business.
• Only 21 percent understand the rates, fees and surcharges they pay.
• Only 15 percent believe they are charged the same as larger businesses.

"It's clear that many owners of small and mid-sized businesses don't understand the complexities of card acceptance," says Robert O. Carr, chairman and CEO of Heartland Payment Systems, one of the nation's leading providers of credit/debit/prepaid card and payroll processing services and the founding supporter of The Merchant Bill of Rights. "Yet, card acceptance is often one of the three largest expenses they incur. Business owners need to educate themselves so they can manage these costs. What they don't know may be hurting their bottom line."

The Merchant Bill of Rights promotes fairness and transparency in card processing and empowers business owners by identifying 10 fundamental rights:

The right to know the fee for every card transaction - and who's charging it.
The right to know the markup of Visa and MasterCard fee increases.
The right to know all Visa and MasterCard fee reductions.
The right to know all transaction middlemen.
The right to know all surcharges and bill-backs.
The right to a dedicated local service representative.
The right to encrypted card numbers and secure transactions.
The right to real-time fraud and transaction monitoring.
The right to reasonable equipment costs.
The right to live customer support 24/7/365.

The centerpiece of The Merchant Bill of Rights is www.MerchantBillOfRights.com, an interactive website that serves as an information clearinghouse. There, business owners can learn about the mechanics of card processing, receive industry tips, ask questions and stay abreast of industry news.

"The Merchant Bill of Rights continues to gain momentum since it was launched last fall," Carr concludes. "Many state associations and business owners nationwide support it - and we at Heartland continue to promote its adoption and push for change within the card payments industry."