‘Twas the week before Christmas, and all through the stack,
Revenue was shrinking — thanks to fees you can’t track.

If your year-end numbers look more naughty than nice, it might not be inflation or market trends — it could be a little green compliance gremlin quietly looting your revenue line.

Yes, we’re talking about card brand non‑compliance and data integrity fees. And while they’re not exactly the Ghost of Christmas Past, they do have a knack for haunting processing statements long after the mistakes were made.

Who’s Getting Grinched?

• Large Merchants: You’ll see these fees disguised as line items in your processing statement, usually buried deeper than your Secret Santa gift receipts.
• ISVs, PayFacs, Marketplaces: Your residuals look a little light this year? That’s because someone forgot to update their compliance logic and now Mastercard’s helping themselves to a slice of your Christmas bonus.
• ISOs: If anyone’s stuck playing Tiny Tim in this story, it’s you. Card brand fees show up, you forget to pass them on, and you eat the cost while your downstream partners act like it’s business as usual.

We’ve seen these silent fee assassins in nearly every project we’ve worked on. Some of you are unintentionally paying the card networks more per month than it costs to lease a G4 jet or dock a 100-foot mega yacht. Ho-ho-no.

Two Holiday Horror Stories

1. Visa’s “Executive Authorization Re‑Attempt” / “Issuer Will Never Approve” Fees

Picture this: a merchant reattempts declined transactions again and again, long after the issuer has made it clear that card is deader than fruitcake in February.

The result? Visa slaps you with penalties for each violation.

One poor soul paid $700,000 in eight months — and had no idea it was happening. That’s a sleigh full of avoidable fees, courtesy of poor decline recycling logic.

2. Mastercard’s “Undefined Authorization Not Allowed”

This one’s fresh from the 2025 compliance stocking. As of July 1, you must clearly indicate whether an authorization is final or a pre-auth. If not? Mastercard charges 25bps on the affected volume.

We’ve seen fines north of $1 million in just 3 months. Imagine trying to explain that to your CFO over spiked eggnog.

Bad Data: The Real Holiday Villain

These fees aren’t “just part of doing business.” They’re often the result of:

• Incomplete or incorrect data fields
• Sloppy transaction routing logic
• Non-compliance with current card brand requirements
• Lack of real-time monitoring and KPI tracking

The networks do give you warning. They send updates. Bulletins. PDFs you probably didn’t read. But unless those updates make it into dev specs and QA tests, it’s only a matter of time before the Grinch strikes again.

How to Reclaim Your Holiday Cheer (and Revenue)

1. Audit Your Statements Like They’re Naughty or Nice Lists Dig into card brand reports. Spot fees labeled:

• Compliance
• Data integrity
• Authorization quality

2. Create KPIs That Light Up Early Warnings Monitor:

• Fees vs. transaction volume
• Trends over time
• Spike alerts on new fee types

3. Make Compliance Everyone’s Job Updates should flow from network → product → engineering → QA → operations. No silos. No holiday miracles required.

4. Fix the Data at the Source You need:

• Better onboarding validation
• Smarter decline logic
• Accurate authorization flags
• Systems aligned with network schemas

A Very Payments Therapist Holiday Message

Non-compliance fees aren’t just annoying — they’re avoidable. So don’t let card brands play Grinch with your revenue this season. Audit your data, fix the leaks, and make compliance part of your holiday routine.

And if you need help? Call us. We’ll get you sorted out faster than Santa down a chimney.

Just promise us that if we help save you millions, we get a ride on the yacht. Or at least a peppermint mocha.