The short answer
Rate creep is incremental markup added to an existing account over time, usually without notice. A 5 basis point increase each quarter is invisible on any single statement but adds 0.20% within a year. The check is simple: calculate your effective rate for three or four consecutive months and look at the direction.
Distinguishing creep from card mix
A rising effective rate can be legitimate if your card mix changed — more rewards cards, more keyed sales, more foreign cards. Ask for the interchange breakdown. If the mix is stable and the rate rose, the markup moved.
Contractual protection
Ask for the markup to be stated in basis points on the agreement, with a clause requiring written notice and consent before any change. Providers who refuse are telling you their plan.
Key takeaways
- Compare effective rate across consecutive months
- Ask for the interchange breakdown before accepting a card-mix explanation
- Get the markup fixed in writing with a change-notice clause
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