Key Takeaways:
- “Junk fees” are often hidden inside confusing merchant processing statements.
- Your effective rate is the only metric that truly shows what you’re paying.
- Reviewing your statement before tax season can save thousands each year.
- Gruvpay’s Savings Calculator gives you guidance on what you should be paying.
We’re approaching the end of the year. For many business owners, that means one thing: tax season anxiety.
As you start reviewing your P&L statements and expenses, you may notice a line item that feels a little bloated: merchant processing fees. Payment processing for small businesses is a necessity, but are you paying a fair rate or unknowingly covering someone else’s overhead?
The reality is, many processors rely on complexity and fine print, knowing most business owners don’t have the time to dig in. Let’s change that.
What Are “Junk Fees”?
In merchant services, complexity is often intentional. When pricing is confusing, it’s easier to overcharge.
Here are a few common junk fees to look for on your statement:
- PCI Non-Compliance Fees: You may be charged simply for not completing a compliance questionnaire you didn’t even know existed.
- Statement Fees: Some processors charge a monthly fee just to send you your bill.
- Batch Header Fees: A daily fee for closing out your terminal.
- Tiered Pricing: One of the more costly models. You’re quoted a low “qualified” rate, but most transactions – rewards cards, business cards, corporate cards, are then charged at much higher rates.
These fees quietly add up month after month.
The “Effective Rate” Test
Forget the “low rate” you were promised. To understand what you’re actually paying for payment processing, use this simple formula:
Total Fees Paid / Total Sales Volume = Effective Rate
If you processed $10,000 and paid $400 in fees, your effective rate is 4%. If you were promised 2.5%, that gap is money leaking out of your business every single month. That’s cash that should stay in your pocket.
The Gruvpay Promise: Transparency
At Gruvpay, we believe small business owners work too hard to have profits eaten away by hidden fees. That’s why we focus on transparent payment processing.
Whether it’s Wholesale, Surcharging, or Dual Pricing (where businesses can offset most of their processing costs), we clearly explain every option before you sign – no surprises, no fine print.
You can explore these transparent models on our Pricing page.
Verify Your Savings Right Now
You don’t need to be a payments expert to fix this. We built a simple tool to help small businesses quickly audit their current processing costs.
Before you close the books this year, take 30 seconds to run your numbers through the Gruvpay Savings Calculator. It provides accurate insight on how much you could save by switching to a transparent payment processing partner.
That extra $2,000 or even $5,000 a year could make a real difference for your business and your peace of mind.
Try the GruvPay Savings Calculator Now