Merchant Account - Monthly Fees

http://www.merchanthotline.com
800-893-9540

The monthly fees are usually in two categories. One is the flat monthly fees sometimes known as "customer service fees", "account maintenance fees" or "statement fees".

This is usually a flat monthly fee of about $5 - $10 per month. Anything more than this may be too much.

The other type of fee is called the monthly minimum. This fee is a minimum amount of "discount fees" that will be assessed to your account each month.

As an example, if your discount rate is 2% and you're charging $1,000 of gross volume, you'd be paying $20 in discount fees. If you are being charged a monthly minimum of $25, your fees ($20 for the $1,000 at 2%) is below the monthly minimum which means you'll end up being charged the minimum for that month (basically an extra $5 to hit the minimum).

Most retail merchants never have to worry about this minimum as they'll usually hit this number with about $1500 or more per month of gross volume.

Internet merchants who take a few months to ramp up to the type of volume that should be able to sustain the business may have a few months where they will not meet the minimum.

This means that you'll either plan on paying the minimum fee on those months or find a provider that will waive that monthly minimum fee (at least for the first 3-6 months).

I hope this helps. If you have questions on pricing or anything else related to credit card processing, I'm happy to help you. Comment or call me! :) 800-893-9540.

Thanks!

Brian

Playlist: http://www.youtube.com/playlist?list=PL2148A9210BCD184E

or Individually:

1. Merchant Account Basics: http://www.youtube.com/watch?v=RuqOJqIiAQI
2. Pricing: http://www.youtube.com/watch?v=ZLADu1_oZZA
3. Per Transaction Fees: http://www.youtube.com/watch?v=817t-qW_hWA
4. Discount Rate: http://www.youtube.com/watch?v=wSSf6_2tnr8
5. Monthly Fees: http://www.youtube.com/watch?v=jbe-uFo9aFA
6. Setup Fees: http://www.youtube.com/watch?v=Rtnj_FUbp78
7. Ecommerce Info: http://www.youtube.com/watch?v=fZKmX8fbqRU
8. Personal Guarantee: http://www.youtube.com/watch?v=aLKjl6N4TUA
9. Summary: http://www.youtube.com/watch?v=7wo2flJ3RJM

Category:

Howto & Style

Tags:

• Credit card processing
• accept credit cards
• payment processing
• monthly fees
• monthly minimum
• Merchant Account
• Credit Card
• Payment