Utah firm helps businesses end excessive credit card processing fees


Estimated reading time: 4-5 minutes

Cash is no longer king, it seems, at least for the younger generations. More and more customers now prefer to pay with a credit card, which means businesses large and small are now faced with a new source of profit: credit card processing fees. Every time a customer uses a credit card, companies lose a percentage of that payment to a black hole known as a credit card processing fee.

Utah Company Verisave fight against these charges. Businesses can save money with Verisave and avoid the headaches that come with trying to decipher the credit card industry.

How credit card fees work

Companies that use credit cards as a method of payment are forced to pay fees each time they process a transaction. There are several types of fees involved in every transaction, which is why some small businesses are loath to accept credit cards – the fees reduce their low profit margins.

Interchange fees are paid to the card issuer (the bank that issued the card to the cardholder) and are used in part to fund rewards and incentive programs such as cash back and air miles. Payment fees are allocated to the processor used by the company for its payment processing solution. Appraisal fees typically accrue to the credit card network and card brands (Visa, MasterCard, Discover, and American Express).

These fees are usually 3% of the total transaction, which is a significant expense for a business to swallow! Businesses are estimated to pay between $140 billion and $160 billion in processing fees per year. Often these fees are inflated beyond what they should be due to the complexity of the credit card payment industry.

Utah firm helps businesses end excessive credit card processing fees
Photo: Peshkova/Shutterstock.com

The dark side of processing fees

There is a common perception that card brands drive processing fees, and nothing can be done about it. But the reality is that many entities and factors affect these fees. For example, most interchange fees actually end up in the hands of the issuing bank (the bank that issued the credit card to the cardholder).

New laws and rules are introduced every year – 800 pages of rules for Visa only! — costing companies more and more. And in a chilling consequence for consumers already battling inflation, new merchant processing fees are expected to trickle down to those consumers.

USA Today reported in an April 2022 article, Visa and Mastercard, which together own 70% of the credit card market, recently changed their fee structures. “The majority of retailers will see their costs rise, which will trickle down to consumers who are already struggling to make ends meet amid the highest inflation in 40 years,” writes Medora Lee.

If you’re a business owner, you’re probably looking for a better solution. Many companies don’t think they can reduce these costs without finding a new payment processor, which can be a disruptive and costly process. Having someone in your corner with expert knowledge of the credit card industry is how you can save your business’ bottom line.

How Verisave can help your business save money

Verisave is not a processor. Verisave is a cost-cutting company that specializes in credit card processing fees and merchant account consulting, which allows them to approach the problem from a completely different angle. They cracked the code by solving the problem in a unique way by adjusting and optimizing the main configuration of the merchant account itself.

…It’s incredibly easy for our customers. We do the heavy lifting and are even able to tell you ahead of time if there are any savings worth pursuing.

–Jeremy Layton, CEO of Verisave

With over 20 years of experience in the payments industry focused on credit card processing fees, Verisave has compiled mountains of industry benchmark data, an in-depth understanding of rules and regulations, and vast experience in merchant account optimization. In simpler terms, Verisave reviews your fees, account setup, and processing agreements with a fine-tooth comb, identifying where overcharges occur so they can be eliminated. The result? More Verisave customers reduce their processing fees by 10% to 30% without having to switch treatment providers.

“It’s a very complex process on our end, but it’s incredibly easy for our customers,” says Jeremy Layton, CEO of Verisave. “We do the heavy lifting and are even able to tell you ahead of time if there are any savings worth pursuing. This makes it a really easy way to reinvest those unnecessary expenses.”

This is a niche offering that most finance teams are unaware of. It’s also not something that can be accomplished in-house due to the scarcity of expertise involved. But just as companies are now outsourcing operations like cybersecurity or HR, many are outsourcing merchant account fee management to Verisave.

Get a quote from Verisave

Based in Salt Lake City and founded in 2001, Verisave saved U.S. businesses more than $100 million in 2021. Businesses looking to effectively reduce their processing costs can view a demo and receive an estimate of the Verisave team on verisave.com.

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