are processed and keep signed agreements securely filed for all rental or member- ship plans. Most importantly, respond to chargeback notifications quickly, using your processor’s dispute management tools to upload proof of service or signed docu- ments. By tightening up your recurring billing processes and dispute response times, you can reduce revenue loss and administrative headaches. IMPLEMENT A SURCHARGE PROGRAM In recent years, businesses across a wide swath of sectors have begun implement- ing surcharging programs or offering cash discounts as a response to rising processing costs. While this can help recoup some fees, it’s not as simple as flipping a switch. Credit card surcharging is tightly regulated by card brands like Visa and Mastercard, and several states have laws that limit or prohibit the practice altogether. In addition, you must never surcharge debit cards, even if they’re run as “credit,” and you must register with the card brands in advance of starting a surcharge program, display clear signage at the point of sale, and ensure that every receipt shows the surcharge as a separate line item. Alter- natively, you can consider dual pricing (listing separate cash and card prices), which may be legally safer in certain ju- risdictions. Whatever path you choose, clarity and compliance are key. Creating a surcharge or dual pricing program isn’t just about offsetting fees. It’s about designing it carefully to stay compliant with card brand rules and state laws while keeping your customers in- formed and comfortable. A transparent, well-communicated program protects your business from penalties and pre- serves the trust you’ve built with every student, parent, and musician walking through your doors. CONDUCT A DETAILED STATEMENT REVIEW Finally, if you haven’t reviewed your credit card processing contract in the last 12 months, there’s a good chance you’re overpaying. Many merchants sign long- term agreements with processors who add hidden fees or raise rates over time. Even “flat-rate” pricing may be disguis- ing significant markups. By conducting a detailed statement review — ideally with a third-party expert who knows the music
retail space — you can uncover unneces- sary charges. This is especially valuable if your store processes school or institution orders, where lower commercial rates may apply if billed properly. Negotiating your contract can result in many thousands of dollars in annual savings, but most business owners don’t know where to begin. This is why you
should consider hiring an independent consultant firm that helps with all of the above issues. Plus, an independent firm can provide you with monthly monitoring of your merchant account which often saves you money without having to switch processors. MI
Lars Rundquist is an account executive at Merchant Advocate, an independent firm that specializes in cost reduction.
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