Here's a quick lesson on the basics of
how card processing works.

​The fees that make up a credit card processing statement are ultimately distributed to three different entities. The SMALLEST distribution are the fees that go to the merchant services provider (ie: markup, for authorization and settlement), as well as dues, assessments, and fees that are paid to the card brands themselves (ie: Visa/MasterCard, for card brand marketing.)

 

However, the LARGEST part of the fees that make up your monthly merchant services statement (usually between 80-90% of your bill) are interchange fees, the compensation paid to the card-issuing banks for advancing payment on a purchase to a merchant while accepting the burden of seeking reimbursement from their client (ie: the cardholder.)

​

The same interchange rates affect ALL businesses regardless of size.  a fixed cost. In fact, there are REBATES that companies accepting many corporate cards are ENTITLED to receive, based on the data that is submitted at the time payment is accepted and submitted. These rebates come in the form of reduced interchange fees for a given transaction. By not submitting this additional data, it's not much different than finding out you’re going to receive a big tax refund from the IRS, only to say,

“No thanks, I’m good. You keep it!"

​