Unlock Hidden EBITDA from B2B Card Fees

A proven strategy to increase portfolio company valuation by millions — without top-line growth or operational disruption

Unlock Hidden EBITDA from B2B Card Fees.  Credit card processing is often treated as a back-office necessity — just another cost of doing business.

But for private equity firms, it can be a quiet lever to increase EBITDA and valuation across B2B-focused portfolios. This area is almost always overlooked — yet holds millions in hidden, recoverable value for those who know where to look.

Real Results

These are just a few examples of how portfolio companies can Unlock Hidden EBITDA from B2B Card Fees — by fixing structural inefficiencies. One portfolio company processing $300,000/month in card volume reduced fees by 43%, saving $144,000 annually.  That one change increased the company’s enterprise value by more than $5 million.

Another B2B firm is saving over $150,000 per month in unnecessary interchange fees — more than $1.8 million annually. At common exit multiples, that translates to an estimated $15 to $20 million in added enterprise value. And that’s just one company, before applying this across a portfolio.

These aren't outliers. This is happening right now inside companies that look just like yours.  Multiply these improvements across 5, 10, or 15 portfolio companies, and you’re looking at tens of millions in enterprise value currently being left on the table due to overlooked payment inefficiencies

What Most Firms Miss

  • Up to 80% of credit card fees have nothing to do with your processor’s rate.
  • Commercial cards qualify at one of four interchange categories — with as much as 1.5% in cost difference before a processor’s fee is even added, depending on how transactions are configured
  • These categories are set by Visa and Mastercard — not your processor — and they’re rarely checked for accuracy, especially when comparing processors.
  • Fees labeled “EIRF” or “Standard” are red flags. But even when those don’t appear, missing data like invoice numbers, tax IDs, or customer codes can cause every commercial transaction to qualify at a higher interchange rate.

Most businesses assume they’re set up correctly. In reality, even small oversights in the configuration are quietly costing them six to seven figures each year.

Why This Gets Missed — and Why It Matters

The payments industry has virtually no regulation.
There are no licensing requirements, certifications, or oversight — which means just about anyone can sell merchant services, regardless of experience.

Even if someone has good intentions and is genuinely trying to do a good job, a lack of deep knowledge around interchange structure and qualification could be costing your company — or your portfolio — millions.  For reference, Visa and MasterCard, publishes a simplified interchange table here, though its only a condensed version of the actual interchange system. In reality, there are over 1,000 unique interchange categories, many of which depend on how B2B transactions are configured — and most businesses (and processors) never optimize beyond the defaults.

That’s a serious issue when your portfolio companies are processing large commercial, B2B, or government payments. These aren't minor technicalities. They're structural inefficiencies that impact EBITDA, cash flow, and exit valuations.

What This Means for Private Equity

  • Increase EBITDA through structural cost reduction — not headcount or top-line growth
  • Improve valuation going into diligence or exit
  • Apply across multiple portfolio companies for exponential impact
  • Identify and correct issues quickly
  • Unlock Hidden EBITDA from B2B Card Fees

Let’s Take a Look

We offer a confidential second set of eyes to see what might be left on the table.
If there’s nothing, you’ll have peace of mind.
If there is — it could mean millions in missed EBITDA and untapped enterprise value.

Request a Portfolio Review

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