Processor fees that do not match the agreement

Fee drift is quiet. It sits on a monthly statement someone approved because the processor name looked familiar and the effective rate was close enough to last year. By the time you notice, several statements may already be paid.

The work is to put the merchant agreement, the rate schedule, and the statements on the same table. Interchange, assessments, and processor markups are different lines. Mixing them in one paragraph is how a fee dispute gets closed as a complaint.

This guide is educational. Telvon does not guarantee a fee credit. We take a documented discrepancy and pursue it with the processor on your behalf.

Pull the signed merchant agreement

Pull the signed merchant agreement, the rate schedule, and twelve months of statements. Circle every PCI fee, statement fee, minimum, and markup that does not match. A highlighted PDF is more useful than a paragraph that says the effective rate feels high.

Start with these:

A markup that does not match the signed rate schedule.
PCI, statement, or monthly minimum fees that the agreement said were included or waived.
A fee billed under a name that does not appear in the contract.
Interchange billed as a flat processor fee instead of pass-through.
A duplicate assessment for the same month.
A catch-all miscellaneous fee that still needs a documented reply.

If a fee line is wrong, name the line. Attach the schedule page that sets the amount. Guessing why the processor billed that way is how a fee letter turns into a complaint.

Line the statement against the rate sheet

The window is short. Missing it is treated as an uncontested dispute, not a delay you can explain later.

Put these on a calendar the day the notice arrives:

The statement date that first showed the fee that is not in the agreement.
The date you requested statements, receipts, and delivery proof.
The date the processor last asked for more documents.
Who on your team is authorized to speak for the business.
Where the finished PDF packet will live, with a file name the processor can open.

Do not wait for a perfect packet. File a complete one before the deadline, then add supplements only if the processor asks.

Mark every fee that has no home in the contract

Processors read documents. They do not sit on hold with you. A clean packet beats a long explanation.

Collect, in this order:

The original receipt or invoice, with the same amount as the charge.
Proof of delivery, pickup, or service completion.
The signed ticket, terms, or booking confirmation.
Rate sheet or addendum that was in effect for the period.
The rate schedule page that sets each disputed fee.

If a document is missing, say so. Do not fabricate a delivery screenshot or a signature.

Write one discrepancy letter

One page of facts, then exhibits. Lead with the MID and the statement month.

The cover note should answer:

What was sold, and on which date.
How the fee was described on the monthly statement.
Whether goods or services were delivered.
Whether a refund was already issued.
Which exhibit proves each point.
What you are asking the processor to do: correct the fees that do not match the agreement.
How to reach the person who assembled the file.

Number the exhibits. A reviewer who cannot find the receipt in thirty seconds will not hunt for it.

Ask for the effective rate schedule

Send only records that belong to this sale. Extra screenshots of unrelated tickets slow the review.

Merchant copy of the receipt or invoice.
The merchant agreement and the fee schedule that was supposed to apply.
Shipping label, pickup log, or signed work order.
Contract language that lists allowed fees and rates.
Prior refund or replacement if one already happened.

Do not attach marketing pages, unrelated reviews, or a letter that only says the customer is wrong.

Keep a 12-month sample, not one month

One authorized person should speak for the merchant account. Mixed stories from the bookkeeper, the owner, and the POS vendor look like confusion, not proof.

Give that person:

A written authorization to contact the processor.
The merchant ID and the case number on the notice.
A single packet, not a chain of forwarded emails.
A record of every call: date, name, and what was requested.
A rule: no one else calls the processor about this statement.

If you hire Telvon, that authorization is the work. You do not sit on hold with a processor while the shop is open. Telvon still needs the agreement, the statements, and a written mandate to speak for the merchant of record.

What the processor usually asks for

Submission is not the end. Processors ask follow-up questions, and silence is often read as abandonment.

Keep a log of:

The date the packet was uploaded or mailed.
Confirmation numbers from the portal.
Any request for more documents, with the due date.
The decision letter, even if it is a denial.
Whether the processor still accepts a written dispute for this billing period.

Store the log with the packet. If you later hire an advocate, that log is the first thing they need.

When a fee is a pass-through

A denial is not always the last word. It is also not a cue to invent a new story.

Read the fee description the processor used, not the one you remember from onboarding.
Check whether the merchant agreement still lets you contest the fee.
Send only the missing exhibit, not a rewritten argument.
If the window is closed, stop calling. The file is done.
Keep the packet. Patterns across cases matter more than one loss.

Telvon will not tell you a fee is impossible to live with. Some extras are pass-throughs that the agreement actually allows.

When it is a billing error

Processors look for a dated, specific discrepancy letter. Vague explanations rarely move a file.

Keep:

The merchant ID and the statement month you are disputing.
Each mismatched fee line, with the contract language next to it.
The date the charge posted and the date the notice arrived.
The billed fee, the contracted fee, and the difference you are requesting.
The deadline printed on the notice, in writing, on a calendar.

Treat the file as a calendar problem first. Deadlines expire whether you feel ready or not.

Do not promise a credit

A complete file usually includes:

The original invoice or receipt.
Proof of delivery, service, or attendance.
The signed merchant agreement and the matching monthly statement.
Your refund or cancellation policy as it stood at the time.
Correspondence that shows they knew the charge.
A short cover note that states the request.

None of this guarantees a credit. It puts the processor in a position to review documented facts.

A processor-fee audit checklist

A rate that was quoted on a sales call is not the same thing as the schedule in the signed agreement. If the lower rate lived only in a conversation, say that honestly. Ask for the fees that appear in the document you signed, not the rate you remember being promised.

After you submit, document:

The date and channel you used to submit.
The exhibit list you attached.
Any items you could not produce in time.
A copy of the full PDF stored off the processor portal.
The confirmation number or reference the processor gave you.
The next date you are expected to hear back.
Who on your team owns follow-up if the file is silent.

Do not pad the request with a round number that looks like a negotiation. Ask for the arithmetic difference between the billed fees and the signed schedule. Inflated asks make a real fee error look like a shakedown.

After you send the letter

Keep a log of:

Dates: every notice, call, and upload.
Names: who you spoke with and what they asked for.
Status: open, submitted, or closed.
Owner: the person authorized to speak for the business.
Next date: the next deadline or expected reply.
Ask: what you want the processor to correct.

What Telvon will not do

Hold, manage, or transfer funds.
Process payments or serve as a financial institution.
Provide legal advice or appear as counsel.
Promise a recovery amount, outcome, or timeline.
Replace your bank, processor, or insurer.
Send promotional text messages.

Telvon is an advocate. You remain the merchant of record. Telvon does not process cards, does not hold funds, and does not practice law. The processor still has to post any credit on their side.

When to hand the file over

If you are missing the calendar, the evidence, or the time to speak for the business, that is the point to authorize an advocate.

Telvon investigates, assembles documentation, and communicates with the bank or processor on your behalf. You stay the merchant of record. Telvon does not hold the money.

Start a case when the dispute is large enough that sitting on hold is costing more than the work of handing it over.

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