Who Really Pays for Those “Sweet Rewards”? Spoiler: It’s You, Business Owner
By Chris Austin, President of Ardiah
You’ve probably seen the ads—local banks high-fiving themselves for “supporting local” with messages like “Earn double points when you shop small!” Sounds warm and fuzzy, right? It even feels like a win when your business is included.
But let’s get real:
This isn’t a gift to you—it’s a reward for your customer, paid for by you.
Here’s What’s Actually Happening:
Every time a customer uses their cashback, miles, or rewards card at your shop, those “free perks” are funded by your credit card processing fees. And most business owners don’t realize just how much of that fee goes to the banks and card brands.
Did you know?
75% to 90% of your merchant fees go straight to interchange and card brand fees, not your processor.
The fancier the card (hello, triple miles!), the higher your cost—often 2.25% to 3.5% or more.
Your local merchant services provider (like us)? We don’t make money off interchange. But we do help you understand it.
Meanwhile, the Banks Are Double-Dipping
Let’s not forget: these same banks promoting rewards programs are also offering merchant processing. That’s right—they’re not just taking the interchange… they’re also:
Selling you long-term leased equipment at crazy markups.
Charging you way above-market rates.
Refusing to give you free or at-cost terminals—even when you’re locked into a multi-year contract.
Quietly increasing your rates over time, once they’ve got you in the system.
It’s like getting charged for the meal and again for the silverware—plus a monthly napkin rental.
We see it all the time: a business signs on with a bank for processing because it seems “safe” or convenient. A few months later, they’re locked into a 48-month equipment lease and wondering why their effective rate keeps climbing.
Let’s Be Honest—The Customer Doesn’t Care
We all love our customers. But let’s be real:
“Wow, I just got 2% back for buying a muffin. I love this place!”
And if they ever pause to consider the cost?
“That’s just the cost of doing business, right?”
They want to tap, chip, or Apple Pay and move on with their day. They don’t know (or care) that you’re paying 3%+ for the privilege.
And Before You Go Full “Cash Only”…
Don’t panic. This isn’t a call to go off the grid. We get it—cash isn’t king anymore. Most consumers don’t even carry it. But going card-only? You might lose the occasional cash-spending customer who just wants to keep it old school.
It’s about balance and strategy, not overreaction.
So What Should You Do?
Don’t assume your current setup is your best option.
Understand what you’re really paying for, and who’s getting your money.
Talk to someone who can help you analyze your statement—and isn’t secretly pocketing most of your fees.
At Ardiah, we help business owners:
Break down how much of your fee is interchange vs. processor profit.
Avoid equipment lease traps and get access to fair, modern tech.
Explore flat-rate or custom pricing models that work for you.
Navigate legal, discreet pricing strategies to manage rising costs—without losing customers or starting awkward conversations at checkout.
Bottom line?
Those reward programs might help bring in customers, but you’re the one paying for the party—twice if you’re also using the bank for processing. We think you deserve better.
Let Ardiah help you cut through the noise, understand your fees, and take back control of your payment processing.
No-pressure analysis. Straight talk. Real options. Call Today: 207-230-4576
Want to learn why we are different? Visit: https://ardiah.com/service/payments
Chris Austin
President, Ardiah
About the Author: Chris Austin is passionate about supporting small businesses and is the President of Ardiah, a trusted provider of payroll, payment solutions, POS systems, and accounting. Chris and his team are dedicated to helping small businesses thrive by delivering tailored solutions and personalized support. If you have a small business support or service need, they would love to help! 207-230-4576 or email: [email protected]
