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.

Phillip Parker is a former merchant services sales agent who believes the industry has been overrun by people who engage in fraud and deception in order to steal from hard working business owners. He created this website to help you avoid the bad players, save money on fees, and to get peace of mind with your merchant account. If you would like to help support his work, learn more about our cost reduction service. We can evaluate your statement, tell you exactly how much you're overpaying, and then help you dramatically reduce your fees with your current credit card processor. Looking to switch instead? See our list of the best merchant account providers.

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