Address Verification System (AVS):

The address verification system determines whether the cardholder’s street address and zip code match the address on file with their credit card company.

Annual Fees:

Yearly fees that are charged every year to cover the basic use of the provider’s service.

Batch Header Fee:

At the end of each business day, your merchant account can be automatically set up to close out for deposit or settlement. That money is then deposited into the merchant’s bank account and the batch header fee is applied to each day’s settled batch.

Early Termination Fees:

It is a fee that is charged if you cancel your contract early.

Gateway Access Fee:

If a merchant is processing transactions via the internet or a virtual terminal, this fee is applied for the customer utilizing the merchant’s internet gateway for processing.

Interchange Reimbursement Fees Assessments:

Fees that the card-issuing banks and the credit card associations charge for each transaction. These fees typically represent the largest expense merchants should pay per sale and per month.

IRS Report Fees:

These are fees that merchant account providers charge in exchange for reporting transaction information to the IRS.

Mid-Qualified Surcharge:

This applies to card present merchants only and is a surcharge that is applied when the merchant has to key enter the transaction.

Minimum Fees:

If a merchant account is not reaching a certain transaction threshold each month, that merchant can be hit with this fee.

Monthly Fees:

Fees that are charged each month.

Online Reporting:

This is a fee that is applied to merchants who choose to view their statements online.

Payment Gateway Fees:

Similar to the terminal fee but are instead applied to ecommerce businesses.

PCI Fees:

The PCI Fee refers to the Payment Card Industry, either for noncompliance or compliance.

Noncompliance: If your business is not PCI compliant, this could cost you more money in the long run

Compliance: You have to pay the merchant account provider to make sure you remain in line with the regulations at all times.

Statement Fees:

Fees that are applied to cover cost of printing and mailing credit card statements.

Qualified Discount Rate:

The percentage charged on all of your credit card sales.

Terminal Fees:

Any business that has a physical credit card terminal, typically your brick and mortar locations, where the business directly swipes a customer’s card is charged this fee.

Travel and Entertainment Fees (T&E Fee):

A merchant is charged a non-bankcard transaction fee for card companies such as American Express, Discover, Diners, and JCB who are considered non-bank cards.

Transaction Fees:

Fees that are assessed any time you run a transaction.

Wireless Access Fee:

If a merchant is using a wireless terminal that processes transactions through a wireless network as opposed to a landline telephone, a monthly fee is associated with this.