Hidden Fees or Junk Fees
Unfortunately, there are plenty of hidden and bogus fees out there. One of the most common hidden fees is an extremely low “teaser” rate that goes up after a few months of processing. This usually involves a condition that’s buried in your contract allowing the provider to raise the discount rate at will, or when you do not meet certain volume targets. Another tactic is to have a teaser rate that only applies to one specific card type in one specific category, then charge higher rates on other cards and categories. Junk fees come under a variety of different names, such as file fee, security fee, audit fee, conversion fee, over-limit fee, excessive transactions fees, and billback fees.
Other Merchant Account Fees Explained:
- Discount Rate
- Transaction Fees
- PIN Debit Transaction Fees
- Address Verification Service Fee
- ACH Fee or Daily Batch Fee
- Monthly Statement / Support / Service Fee
- Internet Gateway Fee
- Voice Authorization Fee
- Monthly Minimum Fee
- Surcharge / Partially & Non-qualified Fees
- Application / Setup Fee
- Reprogramming Fee
- Chargeback / Retrieval Fee
- Annual Fee
- Cancellation or Termination Fee
