How to dispute card terminal lease and processing fees
If you run a small business and take cards, your monthly statement may carry more than the processing rate. Terminal leases and compliance fees are the lines that surprise people most.
Terminal lease and hardware rental
Some merchants sign a lease for a card machine that costs $50 to $100 a month, for a machine that sells for far less. Many of these leases run four years and cannot be cancelled. Find your contract and read the term, the monthly amount, and what it says about ending early. Compare the total you will pay with the price of a new terminal.
Compliance, statement and gateway fees
Look at each monthly line. Names like PCI compliance, statement fee, gateway maintenance and regulatory fee are common. Ask what each one is for. If you completed the compliance steps, or never used the gateway, say so and ask for the fee to be removed.
Ask for an itemized breakdown
Request twelve months of statements and a written list of every fee on your account. Add up what you have paid for the terminal alone. Seeing the total can change the conversation.
What to put in your letter
- Your merchant account number and the date you signed.
- The lines you dispute and the amount for each.
- What you were told when you signed, and where it differs from what is billed.
- What you want: removal of fees, a refund of what you overpaid, or release from the lease.
If they say no
Write to the processor's customer relations. A letter to the company that sold you the lease, which is sometimes a different company, can also help. For a business, a copy to your state attorney general's consumer office may be worth sending.
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