More Unfair Merchant Credit Card Fees

Today’s mystery: “Annual Compliance Service Fees“

If you have a Costco membership card, you know about the annual fee and understand how the wholesale clubs work.  It’s fair and everyone agrees to pay to belong.

However, did you also know that retailers are paying “service fees” for the privilege of processing electronic payments?  We were unfamiliar until a recent posting on our photo industry’s news group forum.  A retailer asked why First Data was charging an “annual compliance service fee” of between $50-100? 

Are other payment processors also charging extra creative fees?

We found this link for how one bank explained their extra merchant interchange “annual compliance service fee.”

We just talked with Chase Paymentech, and according to them, our ScanMyPhotos.com [30 Minute Photos Etc.] account has been paying an additional “service fee” each month since November, 2005.    When a customer asks us why we charged a certain price, we have an instant answer.  In the case of Chase Paymentech, their reply was that they  are “not exactly sure what the fee applied to.”

[Commentary: WayTooHigh.com]