How much is minimum monthly fee?

Hi, Jeff.

If you have a look at our Total Cost Table you can see what the recurring fees look like. You can see that the monthly cost to you is $25.

But many merchant accounts have a "monthly minimum" or "minimum processing" or "minimum discount" fee, which can be charged in addition to the normally advertised monthly fees. To increase the confusion, the monthly minimum processing fee is often the same amount as the advertised monthly fee.

For example, many accounts will advertise a $25 monthly fee and then in the small print disclose a $25 monthly minimum processing fee. Potential merchants often misread this to mean that their monthly bill with no activity will be $25, when it would actually be $50.

Here's how the monthly minimum fees work: you must pay either the minimum fee or the quoted percentage discount rate, whichever is larger. This effectively raises the discount rate in months with low volume. Let's look at another example:

Hypothetical Account Fees:
Monthly: $25.00
Minimum Processing Fee: $25.00
Discount Rate: 2.09%

Merchant Activity: $1000.00
Calculated Discount Fee @2.09%: $20.90
Actual Discount Fee: $25.00 (because $20.90 is less than $25.00)
Amount Due: $50.00
Effective Discount Rate: 2.50% (higher than the quoted 2.09%)

Our accounts do not charge this hidden fee. You pay the quoted discount rates on the transactions you process. You will never pay extra fees due to low or no volume in a given month.

Let me know if you have any other questions or concerns.
/rdj