For example, a transaction that is initiated by a card being swiped through a reader is charged at a different rate than one that begins with card numbers being keyed in by hand.

Likewise, corporate card transactions are billed at a different rate than travel and entertainment cards … which are billed at a different rate than other cards.

While the rates for different transactions and cards – often referred to as “non-qualified” and “mid-qualified” by acquirers and their middlemen – vary, they are set by Visa or MasterCard … and cannot be changed by a merchant acquirer.

However, many merchant acquirers or their middlemen significantly mark up these non-qualified and mid-qualified fees even more without full disclosure. These “surcharges” are pure profit to merchant acquirers and their middlemen. They make transactions that are already expensive even more costly for the small and mid-sized merchant.

To make matters worse, these markups – along with other related fees – often appear on bills issued the month following the actual transaction with little or no explanation. And, they are debited directly from the merchant’s account. These markups – known as “bill-backs” or “enhancements” – are often undisclosed and make rates appear to be lower than they actually are.

Big merchants never pay these extra markups. Success is difficult enough for small and mid-sized businesses. They should not be further challenged by surcharges and bill-backs.

Small and mid-sized merchants have the same rights as big merchants – to know what markups are going to their merchant acquirer and their middlemen.