Merchant Fees Cost Control Kit

Control payment processing costs by inventorying merchant accounts, decomposing statements, spotting fee leakage, and governing renewals and disputes.

Run the OperationCoreStarter Kit60-90 minProcurement and Ops, Finance

Control payment processing costs by making fees understandable: inventory → statement decomposition → anomaly detection → governance → renewal leverage.

Primary outcomes:

  • Cost reduction: reduce hidden fees, pricing drift, and avoidable penalties
  • Risk mitigation: improves payment security posture and chargeback discipline
  • Carbon impact: not applicable

Beginner truth: Merchant fees feel “opaque” until you decompose the statement. Then they become negotiable.


What you’ll build

  1. Merchant account inventory (processors, gateways, merchant IDs)
  2. Statement decomposition (what you’re actually paying for)
  3. Fee anomaly log (spikes and new fees)
  4. Chargeback/refund tracker (loss control)
  5. Renewal/contract terms tracking (avoid lock‑ins)

Step-by-step

Step 1 — Inventory the payments stack

List:

  • processors
  • gateways
  • merchant IDs
  • channels (online, in-person, subscriptions)
  • contract end dates (if known)

Step 2 — Decompose statements (minimum)

Capture for each month:

  • processing volume ($)
  • total fees ($)
  • effective rate (%)
  • “junk fees” (PCI, monthly minimums, gateway fees, batch fees, etc.)

Step 3 — Identify top leakage patterns

Common leakage:

  • fee drift after term changes
  • non-compliance fees (PCI)
  • chargeback losses
  • duplicate gateway/tool charges
  • high downgrade rates (if visible)

Step 4 — Install governance

Monthly:

  • fee review + anomaly log update Quarterly:
  • QBR with processor/gateway (fees, disputes, roadmap)

Templates (copy/paste)

1) Merchant Account Inventory

ProcessorGatewayMerchant IDChannelContract endRenewal noticeOwnerNotesEvidence link

2) Statement Decomposition (monthly)

MonthVolume $Total fees $Effective rate %Interchange/assessment $ (if shown)Processor markup $Fixed fees $Chargebacks $Notes

3) Fee Anomaly Log

MonthFee typeAmountWhy flaggedActionOwnerStatusEvidence

4) Chargeback and Refund Tracker

MonthChargebacks (#)Chargebacks $Win rate %Refund $NotesOwner

  • Vendor Master Data Governance Kit ()
  • Contract Repository and Clause Extraction Copy Pack ()
  • Renewal Control Copy Pack ()
  • Spend Visibility Starter Copy Pack ()
  • Merchant Fees Savings Estimator ()
  • Savings Realization Proof System ()

Definition of Done

  • merchant accounts are inventoried and owned
  • effective rate and fee mix are visible monthly
  • anomalies are logged and resolved
  • renewals are tracked early enough to negotiate

Change log

v1.0 (2026-01): Latest release