Are You Being Charged Junk Fees?

Just like in your business you want and need to make a profit to pay overhead and expenses. This is true in the credit card processing business for the company that is providing the service.  With interchange plus pricing you will see the mark up because of the transparency.  This is what we promote and suggest that any business that is looking for credit card processing insist on. Some companies will give a low ball "show" rate only to make it up somewhere else. Hence the reason why you might see "junk fees". There can be that line that is crossed when too much is too much.  Sometime it is just plan sneaky. One of the worst offenders that I have seen recently is the attached statement.  

If you have any question about this, please feel free to contact us at info@tampabaymerchantservices.com or call 727-916-7294

Month Minimum Processing Fee

Not all monthly minimum processing fees is the same from one company to another.  The standard in the industry is $25.00.  What is not standard is how they are calculated.  This fee is imposed if your credit card charges (discount rates) do not add up to monthly minimum amount.  For example if the monthly minimum is set at $25 a month and the discount fees came to a total of $20, the company will add $5.00 to make up the minimum.  Again the way this is calculated and what fees are applied to the minimum is not the same from one company to another.  Typically when a merchant processes $1250 in credit card volume at an overall effective rate of 2%, they will meet the $25 monthly minimum processing fee.  See below a copy of a statement where this business processed over $10,000 and still there was charge for minimum processing fee of over $24.  When shopping and comparing services, don’t just asked about one rate, peel back the onion, look at the total cost and all the fees.

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

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