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Bridgeway Business

Merchant Account Auditing

| July 21, 2018
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When was the last time you had your Merchant Account Fees audited? In our affiliation with Stryde we offer an 11 point payment processing analysis. We bring transparency to the rate and fee structures. The resulting score of the 11 point analysis determines the risk level of overpayment for merchant card processing services. We can reduce your costs and eliminate high risk by providing transparent solutions and ongoing processing optimization.

Our audit will reveal a “pass” or “fail” determination on the following areas of analysis:

(1)Discount Rate – The Discount Rate Audit compares the base merchant discount rate against the Net Effective Rate of Discount, the true cost of processing. The base discount rate is misleading, as it does not include all processing costs, causing merchants to believe they have a better rate. Assessments, per item fees, and other miscellaneous fees account for the difference.

(2) Interchange Pricing – The Interchange Pricing Audit identifies merchants on an interchange-plus rate plan, which indicates the processor is passing through the interchange rate at cost. If the interchange rate is marked up, or if the merchant is on a tiered rate, which buckets hundreds of available rates into just a few pricing tiers, this audit point will fail.

(3) Benchmark – The Benchmark Audit gauges the merchant’s Net Effective Rate of Discount, the overall cost of processing, as compared to that of other similar merchants with similar volume. The Benchmark Discount Rate is the average rate of processing you should expect to pay.

(4) Charge Detail Per Card Brand – The Charge Detail Per Card Brand Audit determines if the merchant statement has excluded key charge details necessary to calculate transactional or volume based fees. By excluding transaction count or amount of volume, the merchant is unable to validate their spending and may be overcharged.   

(5) Qualified Transactions – The Qualified Transaction Audit calculates the percentage of transactions that processed at the lowest plan discount rate (Qualified Rate or Base Discount Rate). The remaining transactions were downgraded and processed at a higher rate. Merchants should expect nearly all of their transactions to be processed at the Qualified Rate.

(6) Statement Fee Accuracy – The Statement Fee Accuracy Audit re-calculates the entire merchant statement to uncover any discrepancy between the billed fees and calculated fees. This ensures the accuracy of the merchant account charges listed on the statement.

(7) Per Item Fees – The Per Item Fee Audit calculates the average cost charged on a per item basis, by card type; these fees do not include discount fees - just the per item rate. Processors often hide additional per item fees within the merchant statement, including surcharges for non-qualified transactions, making the advertised per item fee seem much more competitive.

(8) Gross Vs Net Audit – The Gross vs Net Audit uncovers a questionable billing practice by some processors in which a merchant is charged based on gross volume and transactions, as opposed to the more common billing practice of charging based on net sales and transactions.

(9) Card Assessment Fees – The Card Assessment Fees Audit validates the card assessment fees listed on a merchant statement against the published fees set forth by the Card Associations. These fees are sometimes absorbed in a tiered pricing plan, but if present on a merchant statement, they should be directly passed through to the merchant at cost.

(10) Merchant Contract Analysis – The Merchant Contract Analysis Audit compares the merchant’s contractual rates with the processor versus the billed statement amounts. A processor may sometimes increase merchant fees regardless of the contractual rates initially presented to the merchant.

(11) Miscellaneous Plan Fees – The Miscellaneous Plan Fees Audit determines the plan fees which are charged by the processor for miscellaneous items such as batch and statement fees, maintenance fees and other ancillary fees charged for supporting the merchant account. These fees are compared against rates industry benchmark standards.

As a merchant without transparency, you have no visibility into true processing costs. The Auditing Services provided by Stryde will give the transparency allowing you to take control of those costs. Merchants are frequently saved thousands of dollars with Stryde Merchant Account Auditing services. Our no fee analysis, using proprietary software, will provide insight from the beginning as to your potential savings. Call 513-752-2393 or 410-937-9933 to get started. You may also book an online appointment for a free analysis.




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