Finance

How To Protect Your High Risk Merchant Account From Hidden Fee And Charges?

While signing the agreement for your high risk merchant account, it is highly recommended to check for all the hidden and additional charges that may afterwards proves to be a risk for your account services.

When you make an agreement with a service provider and acquiring bank, it is a clear possibility that you may be unaware of hidden service charges and fees that is an essential part of your business and transactions. So, to protect your business and high risk merchant account, below mentioned is the list of hidden fee and the related charges.

High Risk Merchant Account

Hidden transaction fee:

This fee is generally taken from the customer’s online transaction and it is usually between $0.25 per transaction. This small amount of fee may extend up in case of large businesses where lots of transactions are being made. To save your business growth from this, you may need to ask your service provider about these hidden charges and that if it is not included on your agreement then you are not liable to pay this hidden transaction fee.

Gateway fee:

This fee is for those who need a payment gateway for their online business. For that, you must check for the possible gateway that can be allocated to you and the minimum fee ranges from $20 to $45 with additional fee for account management and associated payment fee plus data security.

Monthly fee:

Monthly fee is usually fixed and has to be paid under any circumstances. It’s like if your monthly fee setup is around $40 and throughout the month you only make up to about $20 then the remaining $20 will be your negative balance. So before signing for the agreement, you must ask your service provider about this minimum to maximum fee for your credit and debit card both.

Annual fee:

Similar to monthly fee, annual fee including all the additional and necessary charges is fixed when you make an agreement with the service provider. This fee is paid once in a year and it typically includes services of your account management, account security, administration fee and other support services charges. It generally ranges from $75 to $130 per year but it is sometimes necessary to ask your service provider about this fee and some merchant do not charge this fee at all.

Setup fee:

This is the initially paid fee and it is on the basis of your account opening and application processing. Setup fee generally includes underwriter fee, application processing fee , credit card terminal fee, and the one time security fee.  This fee is different from provider to provider depending up on their services and offers.

Termination fee:

Last but not the least, high risk merchant account termination and cancellation fee is applicable when you quit your account services or in case you switch to other provider. This fee is liable when your agreement with the current provider is not over and you terminate it by yourself at the first place.