5 Credit Card Processing Myths That Cost Small Businesses Money
Credit card processing is an essential part of running a business today, but it can also be difficult for business owners to navigate at first. Many small business owners accept certain “truths” about payment processing that actually aren’t true at all. These myths can quietly cost you money, limit your growth, and create unnecessary frustration.
At USB Payment Processing, we believe knowledge is power. Let’s debunk five of the most common credit card processing myths and show you how to protect your business.
Myth #1: All Processors Charge the Same Rates
The truth: Rates vary significantly depending on your industry, pricing model, and processor markup. Two businesses with the same monthly volume can pay drastically different fees simply because of how their processor structures the account.
Impact on your business: This may lead you to overpay by thousands of dollars each year. Transparent pricing models, such as interchange-plus, often provide better long-term savings.
Myth #2: Free Credit Card Processing Is Really Free
The truth: “Zero-fee” programs shift costs onto your customers through cash discounting or surcharges. While legal in many states, these programs can backfire if not managed correctly.
Impact on your business: Customers may react differently to extra charges, which is why it’s important to ensure any program is implemented in full compliance with card brand rules and state regulations. When done correctly, you can protect your business while still delivering a smooth checkout experience.
Myth #3: PCI Compliance Doesn’t Apply to Small Businesses
The truth: Every business that accepts credit cards whether you process 10 transactions a month or 10,000 must comply with PCI DSS (Payment Card Industry Data Security Standards).
Impact on your business: Non-compliance can result in fines, penalties, and even termination of your merchant account. A trusted payment partner can simplify compliance, saving time and protecting your reputation.
Myth #4: Chargebacks Are Just the Cost of Doing Business
The truth: While chargebacks are common, many can be prevented through stronger fraud protection, clear policies, and enhanced data capture.
Impact on your business: Each chargeback costs more than just the disputed transaction, it adds fees and raises your risk profile. A proactive strategy can reduce disputes and protect your bottom line.
Myth #5: Switching Payment Processors Is Too Complicated
The truth: With the right partner, switching to a new payment processor is straightforward and seamless. Terminals, gateways, and reporting tools can be configured with little to no downtime.
Impact on your business: Staying with an expensive or unresponsive provider out of fear means you’re leaving money on the table. Switching can unlock immediate savings and better support.
The Bottom Line
Credit card processing myths exist because the industry isn’t always transparent. Unfortunately, believing these myths can cost small businesses real money every single day.
By questioning assumptions and partnering with a processor that provides clear pricing, compliance guidance, and proactive support, you can reduce expenses and focus on what really matters: growing your business.
Next step: Contact USB Payment Processing today for a free statement analysis. We’ll identify hidden costs, uncover savings opportunities, and show you exactly how much your business could save.
Federal Trade Commission- Credit Card Rules