Are You Paying Too Much in Interchange Fees? Your Old POS Equipment Might Be to Blame
For small to mid-sized merchants, every dollar counts. Yet many are unknowingly losing money where they shouldn’t—on interchange fees. One of the hidden culprits? Outdated point-of-sale (POS) equipment.
Interchange fees—the fees merchants pay every time a customer uses a credit or debit card—are a necessary cost of doing business. But what’s not necessary is paying more than you should simply because your hardware can’t keep up with modern payment standards.
The Cost of Staying Behind
Interchange fees vary depending on how a transaction is processed. The card networks (Visa, Mastercard, etc.) offer the lowest rates for secure, data-rich transactions—think EMV chip, contactless tap, or mobile wallet payments. These methods reduce fraud risk and provide more transaction data, which processors and networks reward with lower fees.
However, if you’re using old magstripe terminals or non-integrated systems, you’re likely being downgraded to higher interchange tiers—sometimes adding up to tens or even hundreds of dollars a month in unnecessary fees.
The Technology Gap Is Real
Outdated equipment might still “work,” but it often lacks:
EMV capability
Contactless payment support (NFC)
Point-to-point encryption (P2PE)
Tokenization and fraud-prevention features
Integration with inventory, CRM, and accounting systems
Without these features, you’re not just paying more—you’re also more vulnerable to fraud, inefficiencies, and compliance headaches.
What You Can Do
Audit Your Statement – Look for signs of downgrades, “non-qualified” transactions, or unusually high interchange rates.
Ask Questions – Talk to your payment processor about your average transaction rates and whether you’re getting the best possible rates.
Upgrade Intelligently – Investing in modern equipment with full EMV, NFC, and encryption support can pay for itself by reducing interchange fees and boosting efficiency.
Does this all seem overwhelming? Reach out to one of Everest Processing’s Payment Experts and will will be happy to assist.
Bottom Line
Technology moves fast, and in payments, staying current can mean real savings. If you’re a small or mid-sized merchant still clinging to outdated hardware, it’s time to take a hard look at what it’s really costing you. Upgrading your POS system isn’t just about convenience—it’s about keeping more of your hard-earned revenue.
Want help evaluating your payment setup or reviewing your interchange rates? Reach out—we’ll help you spot hidden costs and explore smarter, cost-effective solutions. Info@everestprocessing.com
