Blog Article

Payment Processing Fees Part 2: Fixed Fees

Author: Zakry Chami

In Part 1, we took a look at the different fees your merchant service provider could charge you on every transaction that your business processes. This week we'll break down the different fixed and not-so-fixed fees that your business could be charged every month.

NOTE: Grab your merchant statement and compare with the fees listed.


Fixed fees are charged on top of transactional fees. Almost all of these fees are negotiable and not all processors charge them, but you may or may not see these charges on your statements.

Admin fee (monthly fee)

This fee is charged each month for your merchant account provider’s services, such as customer support, tech support, portfolio management, etc.

PCI fee

Payment Card Industry (PCI) compliance is mandatory for every business that accepts credit and debit cards, and these businesses must follow PCI rules and regulations. If a merchant does not comply, they will be fined a non-compliance fee every month. Some payment processors charge merchants this fee to help ensure they are PCI compliant each month.

Terminal fee

If you use a physical terminal in your store to accept electronic transactions, you will likely be charged this fee to cover the cost of renting, leasing or purchasing a terminal from your payment processor.

Payment gateway fee

If you are an eCommerce business, you will likely be charged a fee for the use of your payment gateway. A payment gateway in the online space acts as a terminal does in a brick-and-mortar store.


Statement fee

This fee is charged for printing and mailing your payment processing statements. Although many processors recommend paperless electronic billing, some still charge as much as $10 per month for a paper bill.

Online reporting fee

This fee is charged for the preparation and ability to view an electronic bill and is merely an alternative to statement fees.

Annual fee

This fee is similar to a monthly fee but is charged on a yearly basis to cover the cost of a processor’s services. However, some processors will charge an annual fee and a monthly fee to their merchants.

Batch fee

This fee is charged each time a merchant submits a batch of transactions to be settled. Merchants who are charged this fee resort to only settling transactions once a week. Not being charged a batch fee by your processor means you can settle a batch on your terminal or gateway every day.

Stay tuned for Part 3 where we will be diving into the world of situational processing fees, which ones you should avoid getting charged, and sales tactics to look out for when reviewing your merchant statement or choosing a new provider.


Get in touch with one of our payment experts and switch to transparent billing today!

Zakry Chami

Zakry Chami

is the Product Marketer at Paystone. You can find him playing squash at his local fitness club or planning his next backpacking trip.