A merchant statement can run to pages of rates, assessments, transaction charges, and unfamiliar fees. Meanwhile, you are managing games, guests, maintenance, payroll, and the Saturday rush. The risk is straightforward: payment costs can move while your attention is where it needs to be, on the venue.
In this IAAPA Education Webinar, Embed Payment Solutions Manager William Moser spoke with Mitchell Thompson, Head of Sales at Windcave US, and Hans Milberger, owner of Hyper Beer Company. Their advice gives operators a practical way to review the numbers, prepare for disputes, and make payment decisions without adding friction to the guest journey.
1. Calculate the number that shows your total cost.
A quoted discount rate is only one component of payment processing. Interchange, assessments, fixed transaction charges, processor mark-ups, and other items can make the amount leaving your business much higher.
Start with your effective rate:
Effective rate = total processing fees ÷ total card volume × 100
As William Moser explained, “Total fees divided by total processing equals your effective rate. That’s your actual bill.”
Calculate it monthly, then compare the trend across six, 12, and 18 months. A small movement may reflect a change in card mix. A steady rise deserves a question. Ask what changed and whether it came from interchange, processor pricing, or a new charge.
For revenue-share locations, an unexpected cost can affect the expenses deducted before a partner split and create an awkward correction later. Hans Milberger described the operator’s reality clearly: “At the bottom line, the effective rate is the most important thing. What’s the absolute total with fees that I’m paying against what I’m taking in?”
Add refund volume and chargebacks by reason to the same routine for a quick view of payment leakage.
2. Match every chargeback to the right evidence.
Fraud claims and consumer disputes require different responses. Your team needs enough information to quickly identify the channel, transaction, gamecard load, booking, refund, and reason code.
Hans Milberger explained that he can compare the payment charge with the corresponding game-card purchase, helping show what the guest paid and what the venue delivered.
Online and telephone payments need particular attention. Mitchell Thompson described a venue that thought its gateway was blocking legitimate bookings. The data showed around 500 attempts in ten seconds, using the same card number with different names and IP addresses. The blocked activity was card testing.
Your review with a provider should cover:
- Which controls apply to in-person, telephone, and online payments;
- Whether 3D Secure is available for online checkout;
- How velocity rules and card-testing detection work;
- Which transaction and fulfilment records you can retrieve; and
- How quickly your team can see chargebacks, refunds, and their reason codes.
“Talk to whoever your payment provider is,” Mitchell Thompson advised. “Ask them what tools they have available and what technology they have to proactively defend you as a business.” Choose controls in proportion to your exposure, and confirm responsibilities for every sales channel.
3. Compare the full cost of each payment model.
Dual pricing can appear to remove card-processing expense by showing different cash and card prices. Compare the full cost of both methods. Cash takes team time to collect, count, reconcile, and deposit. Till variances, security, and transport also affect the venue’s margin and workload. Cash handling is also prone to theft.
Fee-recovery models can create compliance obligations, and requirements can change. Before introducing dual pricing, a surcharge, or a convenience fee, confirm current card-network and local requirements for every location with your provider and qualified advisers.
Run the decision through three tests:
- Commercial: What is the all-in cost of cards and cash, including staff time and reconciliation?
- Operational: Can your POS, terminals, signage, receipts, and accounting handle the model accurately?
- Guest experience: Is the price clear before payment, and can a team member explain it in one sentence?
The full guide True Cost of Payments in FECs: Hidden Fees and Dual Pricing Explained, provides more context on merchant fees and pricing models. Base your decision on current statements, payment mix, operating costs, guest expectations, and applicable requirements.
4. Fix the processing problem before it reaches the guest.
Guests are trying to load a game card, book a party, or start playing. A price that changes at the terminal can prompt hesitation at the final step. Hans Milberger put the commercial risk simply: “Confused customers don’t buy.”
Walk through the payment journey as a first-time visitor. Check that the same terms appear online, at the kiosk, on menu boards, and at the counter. Ask a front-line team member to explain the options. If they need payment-industry language, simplify the model or communication.
Test whether processing costs can be improved before passing them to guests. Pull recent statements, calculate the effective-rate trend, question unfamiliar charges, review low-value transaction costs, and ask what pricing structure suits your card volume and average ticket.
For an immediate review:
- Calculate your effective rate for the latest month.
- Compare it with six, 12, and 18 months ago.
- List new or unexplained fees and request written explanations.
- Review refunds and chargebacks by channel and reason.
- Test the price and payment explanation at every guest touchpoint.
Make payment reviews part of venue operations, because payment processing deserves the same regular attention as labour, game performance, and maintenance. A five-minute monthly check can show whether costs are stable, while clear records and a well-tested guest journey help your team act when something changes.
Watch the original webinar for the full discussion or talk to our in-house Payment Gateway Gurus for a complimentary, no-obligation review of a recent merchant processing statement.
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