The Merchant Bill of Rights calls for:

1. The right to know the fee for every transaction — and who's charging it. Today, card processing services can be the third highest expense many small and mid-sized businesses incur, following right behind labor and product costs. Yet, many merchants are confused by the complexity of interchange rates, markups and other related fees. Likewise, because fee structures are rarely clearly disclosed, most merchants are unaware of the many different entities profiting from each transaction. All businesspeople have the right to know exactly who is getting paid — and the total amount.
2. The right to know the markup on Visa/MasterCard fee increases. Visa and MasterCard adjust rate categories 1-2 times each year, usually in April and sometimes in October. When rates go up, many merchant acquirers (contracted by the merchant to handle its card transactions) and their agents seize the opportunity to inflate them even more — and then deceptively blame the increase on Visa/MasterCard. Small and mid-sized merchants have the right to know the markups added to rate increases.
3. The right to know all Visa/MasterCard fee reductions. Annual fee adjustments by Visa/MasterCard may also include reductions in some card transaction categories as well as incentives for certain categories of merchants and card types. Yet, small and mid-sized merchants often do not receive them. In 2003, for example, Visa/MasterCard settled the Wal-Mart class action suit which called for hundreds of millions of dollars of fee reductions. While all large merchants received their share, most small and mid-sized businesses did not because of a loophole in the settlement agreement that allowed merchant acquirers and their middlemen to keep the reductions. Small and mid-sized merchants have the right to know about these incentives and fee reductions.
4. The right to know all transaction middlemen. Card processing is a fairly simple process that requires four entities at most: a bank, Visa/MasterCard, a telephone or Internet connection, and a processor. In some cases, however, as many as 12 additional, but different, entities get involved … each taking a cut from every transaction. While the transaction process does not change, middlemen only increase costs for the merchant. Small businesspeople have the right to know how many middlemen are receiving a portion of the cash automatically deducted from their checking account.
5. The right to know all surcharges and bill-backs. Visa/MasterCard charge as many as 110 different interchange rates depending on the type of card used and how it's used. While the rates for different transactions and cards vary, they are set by Visa or MasterCard and cannot be changed by a merchant acquirer. However, many merchant acquirers or their middlemen significantly inflate these set fees with surcharges. These fees — often called "bill-backs" or "enhancements" — frequently are deducted the month following the actual transaction without disclosure, making them difficult, if not impossible, to monitor, reconcile and track. 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.
6. The right to a dedicated local service representative. Without the backing of a sophisticated purchasing organization, small and mid-sized businesses rely on their merchant acquirers for initial and ongoing training, deposit tracking and reconciliation and on-site technical support. Yet, after the initial sale, instead of helping their customers successfully manage the complexities of card processing and build successful programs, many merchant acquirers never visit them again. Small and mid-sized merchants have the right to a dedicated local service representative.
7. The right to encrypted card numbers and secure transactions. Hundreds of thousands of attempted system hacks are foiled every day by large card transaction processors. Yet, not all merchant acquirers guarantee encrypted card numbers and secure transactions. Many have not made the financial investment required to completely protect their systems. This puts every merchant — especially small and mid-sized ones who don't have internal safeguards — as well as the millions of consumers who use credit and debit cards at risk. Small and mid-sized merchants have the right to encrypted card numbers and secure transactions.
8. The right to real-time fraud and transaction monitoring. Credit and debit card fraud costs American business billions of dollars every year. As such, real-time fraud and transaction monitoring are critical to a merchant's business success. Unlike large merchants who have entire departments and controls devoted to detecting and preventing fraud, most small and mid-sized businesses rely on their merchant acquirers to provide the tools they need to do this required monitoring. Yet, many merchant acquirers don't offer these tools and resources, leaving their clients exposed and vulnerable. Small and mid-sized businesses have the right to the same real-time fraud and transaction monitoring systems of larger companies.
9. The right to reasonable equipment costs. Availability of card processing equipment has become widespread — with warehouse clubs, consumer electronics stores and online auctions routinely providing this equipment at very reasonable costs. Yet, many merchant acquirers sell the concept of multi-year leasing, locking business owners into costly, non-cancellable long-term commitments. Small and mid-sized merchants have the right to reasonable equipment costs — and reasonable financing if they need it.
10. The right to live customer support 24/7/365. Today, card processing is mission critical for all business owners. As such, equipment failure during a busy period can be a debilitating blow to revenues, reputation and customer service. For merchants who don't have the internal resources to immediately respond to and minimize service disruptions, a simple phone call with a support professional can often quickly resolve an issue. Similarly, emergency access that connects only to an automated phone line can turn a speedy resolution into a disaster. Small and mid-sized businesses have the right to effective, live customer support 24/7/365.

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