5 Hidden Fees to Avoid
Five Hidden Fees to Avoid
No two service providers are alike. Before you sign a contract always ask for full fee disclosure.
- Cancellation Fees. Too often, customers don’t receive the savings they were promised or experience a decline in customer service once they’re locked into a contract. But high cancellation fees — ranging from hundreds to thousands of dollars — prevent them from switching providers. Don’t let these fees prevent you from receiving the quality service you deserve. Ask about cancellation fees before you sign anything.
- Monthly Minimum Fees. Many merchant companies charge a monthly minimum processing fee. You can avoid this fee, in many cases, by meeting or exceeding the collected transaction and discount rate fees. For example, if your monthly minimum fee is $25, the collected transaction and discount rate fees must equal or exceed $25 per month. By processing more than this amount, you should be able to avoid this fee altogether. If your processing volume will be low, it may be better to pay a slightly higher statement fee and have no monthly minimum fee.
- Double Transaction Fees. These include things like “sales item fees” and “POS watts fees.” Sometimes these fees are broken into different terms and found in different locations of the contract and statement. Always review your bill carefully and understand what you’re being charged for on each bill.
- Multiple Monthly Fees. While many merchant account services require a statement fee, some providers include additional charges such as Customer Service Fees, Debit Access Fees, Help Desk Fees, and PCI Compliance fees. These fees are often unnecessary and always costly.
- High Monthly Volume Surcharge. Some providers charge an additional percentage on top of your normal discount rates, based on volume processed above your estimated monthly volume. Learn the details before you sign any contract.
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. As always, if you decide to switch to Veritrans, we’ll reprogram your hardware at no charge.
