Watch Out for Hidden Fees Charged by Most Credit Card Processors

Non-Qualified Discount Fees
Most processors will advertise a low ‘qualified’ rate, but charge a number of additional ‘non-qualified’ fees on top of their standard pricing.
Interchange Differential Fees
Differential fees are part of the Interchange Differential pricing method used by most processors. On top of the “non-qualified rate” these processors will also make you pay the difference in cost between a consumer card and your non-qualified card. This means that you will also have to pay an interchange differential fee, even though you already paid a penalty through the “non-qualified rate”. This makes interchange differential pricing expensive as merchants are getting double-dipped on the same transaction.
Monthly Minimums
Many processors will charge a ‘monthly minimum’ on top of their standard monthly fees. This ‘monthly minimum’ is dependent on the total fees generated from your Visa and MasterCard transactions; meaning that if you don’t process enough payments, these processors will charge you processing fees regardless. Some processors will blame Visa or MasterCard for these minimums, but these fees have nothing to do with Visa or MasterCard and are instead pocketed by the processor charging them.
Statement Fee & Admin Fees
Many processors will charge additional ‘statement fees’ or ‘admin fees’ on top of their standard monthly fee.
Quarterly Fees & PCI Fees
Many processors have recently started charging quarterly fees or monthly PCI fees. Unlike these processors, our PCI assessment services are included as part of our monthly fee.
Setup & Application Fees
Most processors will have a setup fee for your merchant account. Some will even charge a separate ‘application fee’, which is non-refundable even if your merchant account application is declined.
Early-Termination, Contract Closure & Leasing Fees
Almost all processors have a 3 to 5 year processing contract, with cancellation fees ranging from $250 to $5,000 or more. Merchants who sign equipment lease agreements can also face large equipment buyout rates.