How to Dispute Unauthorized Fee Increases on Your Processing Statement

One of the most frustrating experiences for a merchant is discovering unexpected fee increases on a processing statement. Whether it is a new monthly fee, a higher per-transaction rate, or a charge you have never seen before, unauthorized fee increases are more common than you might think.

How Fee Increases Happen

Processors may increase fees for several reasons: interchange rate changes passed through to you, "rate adjustment" clauses in your contract, addition of new fees not in the original agreement, or errors and system changes that affect billing. While interchange passthrough is legitimate, adding fees outside of your agreement is not.

Step 1: Document the Changes

Compare your current statement to your original agreement and your previous months' statements. Identify every fee that has changed or been added. Calculate the dollar impact of each change.

Step 2: Contact Your Processor

Call your processor's merchant support line and reference specific fee changes by name and amount. Ask for a written explanation of each change, including what contract provision authorizes it. Keep detailed notes of the conversation including the representative's name and any case or ticket numbers.

Step 3: Escalate If Needed

If frontline support cannot resolve the issue, request to speak with a supervisor or account manager. Put your dispute in writing via email so there is a paper trail. Reference your original signed agreement and highlight any discrepancies.

Step 4: Know Your Options

If the processor cannot justify the increases, you have options: negotiate the fees back to their original levels, request a credit for overcharges, use the dispute as leverage to negotiate better overall terms, or begin evaluating alternative processors.

Mogil Partners advocates for our clients when fee disputes arise. We have the industry knowledge to identify when increases are legitimate (interchange changes) vs. unauthorized markups. Contact us if you need help.