In today’s competitive retail environment, managing operational costs is more than just a best practice—it’s a survival strategy. For furniture retailers, many overhead costs are visible and easy to track: rent, payroll, and inventory. But one area often escapes close scrutiny: credit card processing merchant fees.
These merchant fees, quietly embedded in monthly statements, can add up to thousands of dollars monthly. While each individual charge may seem small, collectively, they can take a significant bite out of your bottom line. Understanding and addressing these costs is essential to improving your overall financial health.
The Hidden Impact of Merchant Fees
Every time a customer pays with a credit or debit card, a portion of that transaction goes to a payment processor. These charges can include:
- Interchange fees
- Markup fees
- Assessment fees
- Monthly service or gateway fees
- Miscellaneous surcharges
Unfortunately, these aren’t always clearly labeled or easy to interpret. Without regular audits, many retailers pay more than necessary due to outdated rates, hidden charges, or simply because they haven’t revisited their contract terms in years.
Why This Matters for Retailers
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Profitability Starts with Efficiency
Trimming operational fat doesn’t always require big changes—sometimes it’s about making smarter choices with the systems you already use. Cutting unnecessary merchant fees can lead to immediate savings, without the need to overhaul equipment or switch providers.
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Hidden Fees Are Common
Payment processing statements are notoriously complex. Even experienced business owners may not spot redundant fees or rate increases that have crept in over time. By becoming aware of where these charges hide, you can take the first step toward correcting them.
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Contracts Can Be Negotiated
Many retailers assume they are locked into unchangeable agreements. However, rates can often be renegotiated, even within existing contracts, especially when you understand industry standards and how to advocate for better terms.
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Fees Change Over Time
Even if you negotiated great rates in the past, the merchant services landscape is constantly evolving. Regularly reviewing your processing statements helps ensure your business is still getting the most cost-effective deal available.
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Savings Free Up Capital
Reducing backend costs like processing fees can generate extra capital, money that can be reinvested in inventory, marketing, employee development, or improving the in-store experience.
What You Can Do Next
- Review your current processing statements. Are there fees you don’t understand?
- Check your contract dates and terms. Is it time to renegotiate?
- Consider a third-party audit. Just like hiring an accountant to review your books, bringing in an expert to evaluate your payment processing structure can be beneficial.
For HFA members, one available resource is Merchant Cost Consulting, an HFA Solution Partner specializing in identifying and reducing merchant services fees. Their team works within your current setup, so no switching providers, software, or equipment is required, and they negotiate to secure lower rates on your behalf. They also offer continuous monitoring to ensure ongoing savings. HFA members receive exclusive benefits and only pay a percentage of the savings they achieve—if no savings are found, there’s no cost.
Final Thought: In an industry where margins can be tight, controlling what you can, like merchant fees, is a powerful way to improve profitability. It’s not about cutting corners, but about being informed and intentional about where your money goes.
FREQUENTLY ASKED QUESTIONS
How much should I expect to save?
Furniture retailers working with MCC typically save 15-40% on credit card processing fees.
How long does it take to see savings?
Many clients start seeing reduced fees within 30–60 days of our engagement. The exact timeline depends on your processor’s responsiveness and the complexity of the current contract.
Will I still have control over my merchant account?
Absolutely. You remain in full control of your account. We simply advocate on your behalf to negotiate better terms and monitor your monthly statements to ensure savings are maintained.
Do you work with other expense areas?
Yes, MCC also helps with expense reduction in the following areas: Waste/Trash Removal, Telecom, Utilities, Shipping, and Treasury. Packaging all expenses together will give you a better savings split discount.
Do I get a discount if I am an HFA member?
Yes, HFA members receive exclusive discounts compared to normal retailers/businesses not in the group.
I am currently under agreement with my processing company. Can I still work with your company?
Absolutely. When they hire us, most of our clients are under contract with their existing processing company. We can still find ways to drive down your costs while working within the current contract.
