Merchant Account Processing Minimum

Your merchant account contract may include a provision that will allow your credit card merchant processor to charge you a minimum processing fee if you do not reach a predetermined processing level. What this means is that if your credit card processing provider does not get a certain minimum of processing fees from you in any given month, they will just charge you the minimum fee instead. If your payment processing fees exceed the minimum, it becomes irrelevant, as your merchant account processor simply gets what has been charged already and there is no need to charge anything in addition.

Although some credit card processing companies still charge a minimum processing fee, specifically to small business merchant accounts users, it has become an increasingly rare occurrence. You should carefully review every proposal that includes such a charge and compare it to other proposals you have received. Although the overall credit card processing costs are composed of several charges and all of them should be taken into account, chances are that, if a credit card processing company wants to charge you a minimum fee, they will want to charge you other unnecessary charges and will probably not be your best option to choose.