Our own CEO Eric Cohen was interviewed by Digital Transactions to discuss the impact of interchange fees on merchants. His take? It’s actually processing fee increases, not interchange, that are hitting business’s bottom lines the hardest.
Category: Press
PODCAST: How Hidden Payment Processing Fees Affect Your Bottom Line
In this episode, Eric Cohen of Merchant Advocate explains the critical need for orthodontic practices to understand credit card processing fees. He emphasizes the impact of hidden fees and offers strategies to monitor and reduce costs, ultimately enhancing practice profitability and valuation.
Practicing Good Payment Processing Hygiene Can Strengthen Your Practice’s Valuation
Ensuring good payment processing hygiene is essential for maximizing the valuation of your orthodontic practice, especially when considering a sale to private equity investors or outside buyers. Poor payment processing can lead to unnecessary costs, impacting your practice’s long-term value. In this final article of a series of 4, we explore how auditing and reducing card processing fees, correcting coding errors, and improving data handling can save you significantly and enhance your practice’s overall valuation. Don’t let poor payment processing hygiene harm your practice’s future.
How to Avoid Unfair Fees When Your Payment Processor is Embedded in Your Practice Management Software
Orthodontic practices increasingly rely on practice management and EMR software to enhance efficiency and data security. However, these platforms can lock practices into specific payment processors, increasing costs. In this third article with Orthodontics Products, we explore how regular software updates and diligent monitoring of credit card statements can prevent avoidable fees and compliance issues.
Why Skipping Your Annual PCI Survey Will Cost Your Practice
Orthodontic practices face unique challenges in navigating Payment Card Industry (PCI) compliance, which is crucial for protecting payment information and avoiding significant fines. While HIPAA covers patient medical records, it does not ensure PCI compliance, necessitating adherence to both sets of standards. In this second article of a series of four, we will explore the key steps your practice needs to take to safeguard sensitive payment data, including implementing PCI DSS’s 12-step checklist.
Why the ‘swipe fee’ battle between retailers & banks is far from over
In this article for Modern Retail Management, our CEO weighs in on the rejection earlier this week of a $30 billion proposed settlement over credit card transaction interchange fees.
“Eric Cohen, CEO of payment processor negotiation service Merchant Advocate, said the settlement was expected to be rejected following a hearing earlier this month. He said the settlement would have done little to truly relieve store owners of the cost burdens of interchange fees. One proposed requirement in the settlement to limit the fees by four basis points, for example, would be about $400 on $1 million worth of transactions. ‘You’d never see that,’ Cohen said. ‘If you really look at the industry, the reduction in cost may never actually reach the business owner.’
He also said the proposal didn’t attempt to address rates for future types of credit cards. Currently, cards with high rewards will carry a higher interchange fee. ‘It doesn’t say they can’t come out with new cards or rules, and that could increase fees,’ he said.”
Read the full piece here.
How Credit Card Processors Overcharge 72% of Businesses
Orthodontic practices often incur high costs from credit card processors due to inflated fees and additional charges, significantly impacting their finances. By understanding and auditing merchant statements, practices can mitigate these expenses and optimize financial outcomes. In this first article of a series of four, we explore strategies such as negotiating with current processors and considering cash discounts or surcharges, offering practical tips to reduce these fees effectively.
How to Save on Credit Card Processing Fees
Restaurants are grappling with rising credit card processing fees, which have become a significant financial burden. Luckily, there are proactive approaches restaurant owners can take to cut these costs and achieve greater financial stability. This article explores some of these strategies, such as implementing surcharges or cash discount programs and understanding the role of card processors.
Two Simple Steps for Navigating Economic Stress
Small businesses have faced numerous economic challenges in recent years, from COVID-19 to inflation and supply chain issues. It’s become increasingly difficult to achieve and maintain profitability, but there are proactive measures small business owners can take to improve their bottom line. In this article for Small Business Currents, we discuss two of these strategies: evaluating your tech stack ROI and gaining a better understanding the processing space.
How Credit Card Swipe Fees Are Impacting Retailers
Even after a recent proposed $30BN settlement which aimed to lower merchant fees from Mastercard and Visa, the former still increased transaction fees last month. Between these fee increases and the settlement being far from approved, businesses may only see literal pennies on the dollar in savings in the short term.
“Most card networks publish their interchange rates twice a year, in April and October. These fees are designed to cover the costs of processing and authorizing credit or debit card transactions,” explains Eric Cohen, CEO and founder of Merchant Advocate. “An increase can occur due to several factors, all of which are weighed to determine appropriate interchange rates. These factors include operating costs, competitive landscape, regulator changes, etc.”