The Hidden Costs of “Low Fee” Processors and How to Avoid Them

The Hidden Costs of “Low Fee” Processors — and How to Avoid Them

If you’ve ever been tempted by the promise of “2.6% + 10¢ per transaction”, you’re not alone. Flat-rate processors like Stripe, Square, and PayPal have made credit card processing look effortless — but what most business owners don’t realize is that those “simple” rates often hide a long list of silent fees that add up quickly.

At CardPlicity, we work with business owners every day who switched to us after realizing they were paying far more than they expected. Here’s what’s really going on behind those “low fee” claims.

Flat Rates Sound Great Until You Scale

Flat-rate processors were built for startups, freelancers, and side hustles — not high-volume operations. They’re convenient at first, but once your transaction volume increases, the simplicity that drew you in starts costing you money. Flat-rate models average the cost of all card types (debit, credit, rewards, corporate, etc.) into one price — which means you pay more on the majority of transactions just to cover the expensive few. If you process more than $25,000 a month, that convenience premium can cost you thousands per year.

The "Gotcha" Fees That Sneak Up On You

Even with a flat rate, your statement might include additional line items like:

Chargeback Fees: $25–$50 per incident
Payment Dispute Resolutions: up to $15 each
Monthly Account or Platform Fees (especially on premium plans)
High-Risk Penalties — sudden freezes or terminations for industries like CBD, vape, or medical supplies
Cross-Border Fees — small percentages that pile up with international transactions

What started as a predictable rate quickly becomes unpredictable — and that’s the opposite of what a business needs.

Why Interchange-Plus Pricing Wins Long Term

With interchange-plus pricing, your costs are transparent and scalable.
You pay the actual interchange fee set by Visa, Mastercard, or Amex — plus a small, fixed markup from your processor.
That’s it. No hidden layers, no surprise surcharges, and full visibility into where every penny goes.

This model is ideal for high-volume, multi-location, and regulated industries — including medical and dental practices, where transparency and compliance are non-negotiable.

A Processor That Scales With You

At CardPlicity, we help you move beyond cookie-cutter payment solutions.
Our network of specialized banking partners allows us to offer custom rates based on your volume, your risk profile, and your industry.
That means the higher your volume, the more you save — without sacrificing security or stability.

The Bottom Line

If your processor can’t explain your fees, you’re probably paying too much.
Switching to a transparent provider like CardPlicity can help you lower your effective rate, strengthen compliance, and gain the flexibility to scale your business confidently.

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