Monthly Minimum Fee Definition

Merchant Account Monthly Minimum Fee Explained:

What is a Monthly Minimum Fee? Often referred to as just a “Monthly Minimum,” most merchant account providers charge a Minimum Transaction Fee if the total transaction processing fees for the month do not add up to a minimum amount. The minimum transaction fee varies by provider but usually costs $10-$35.

As an example, if the monthly minimum fee charged by a processor is $15, and a merchant does not charge any transactions in that month, the merchant will be charged a minimum fee of $15 in addition to all other fees for that month (i.e. statement fees, gateway fees, etc). This would also apply if a merchant does not charge enough sales to add up to the monthly minimum fee. In which case, the fee would be rounded up to the monthly minimum fee of $15.

Merchants who regularly process over $1000 per month in credit card transactions are rarely affected by a minimum fee because their transaction fees exceed the monthly minimum fee.

About The Author

Phillip Parker

Phillip Parker is an independent digital payment consultant specializing U.S. and Canadian point-of-sale, ecommerce, and mobile payment acceptance. He has nearly two decades of experience in card payment services, both as a former merchant services sales representative and as a professional journalist covering the payments industry. Phillip created this website and has written over 1,000 articles regarding all things payments. He has also researched and published reviews about nearly every payment services provider and processor. In addition his contributions here, Phillip has also been quoted in several major publications such as The Los Angeles Times, INC Magazine, Miami Herald, Computer World, and numerous others.

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