4-3 When Merchant Account Fees Are Assessed

When Merchant Account Fees Are Charged

Merchant service providers typically utilize two different methods for charging processing fees. After you familiarize yourself with the different ways, you can contact you merchant provider and request that your fees be charged using the method that you prefer.

Throughout The Month
The most common way that a merchant service provider charges for processing fees is to deduct the qualified discount rate from a transaction prior to depositing it in to your bank account. At the end of the month the processor will make an additional charge for all mid and non-qualified surcharge fees, as well as any flat dollar amount fees such as transaction fees, batch fees, and statement fees. Many merchants do not like this method because it makes it difficult for them to keep their account balances and books in order.

The second method that a merchant service provider will use to charge for processing fees is to wait until the end of each month, and then deduct fees in one lump-sum charge. This method carries more risk to the acquiring bank, and some providers are not able to offer this option to their merchants. Third-party processors and larger independent sales offices (ISO) that assume risk for their own merchant accounts are usually able to provide this method of charging at their own discretion.

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