Identify Hidden Fees: Uncovering Interchange Padding
Interchange padding is a deceptive practice where payment processors add hidden markups to the base interchange fees on your merchant statements. These disguised charges inflate your processing costs, making your statements opaque and more expensive than they should be. We meticulously audit your merchant statements to identify and eliminate these unauthorized or excessive markups, bringing true transparency and fairness to your payment processing expenses.
The Insidious Nature of Interchange Padding
Interchange fees, paid to the card-issuing banks, are a non-negotiable part of credit card processing. However, some processors (or Independent Sales Organizations - ISOs) embed additional markups directly into these interchange rates, making it appear as though the entire charge is the standard interchange fee. This "padding" is often hidden within complex, bundled pricing models or disguised as legitimate fees. Because interchange rates are already so intricate and vary by transaction, it becomes nearly impossible for most merchants to spot these extra, unauthorized charges, leading to consistent overpayment and eroded profits.
How Our Audit Unmasks Hidden Interchange Padding
​Our specialized merchant statement analysis is designed to expose and challenge interchange padding. We perform a forensic audit of your processing statements, line by line, comparing your billed interchange rates against the publicly available, actual interchange rates for each transaction. Our process includes:
Rate
Comparison
Cross-referencing your billed rates with official card network interchange tables.
Markup
Identification
Clearly separating legitimate processor markups from hidden interchange padding.
Contractual
Compliance Check
Verifying that your billing aligns with your negotiated contract terms.
Direct Benefits of Eliminating Interchange Padding:
We turn complex, confusing statements into clear evidence of overcharges.
Stop paying for invisible markups. Contact us today to schedule your merchant statement analysis. Let us help you identify and eliminate interchange padding, ensuring fair and transparent payment processing costs for your business.