13 Merchant Statement Fees Worth Questioning
A plain-language list of the add-on fees on card processing statements, which ones come from Visa and Mastercard, and which ones you can often get removed.
By Are You Losing Money editorial team · Updated · 5 min read
Short answer
Interchange and card network fees are set by Visa, Mastercard, and the other networks, and they are rarely removable. Many other lines on a statement, including statement fees, batch fees, annual fees, monthly minimums, and PCI non-compliance fees, are processor charges that can often be reduced or removed if you ask in writing. Add them up for a full year before you call.
Key takeaways
- Sort every fee into two groups: card network charges, which are passed through, and processor charges, which are negotiable.
- Small monthly fees add up. Five fees averaging $15 a month cost $900 a year.
- Annual fees are easy to miss because they appear on one statement a year.
- Get every fee change confirmed in writing, then check that it stays gone on the next three statements.
Two kinds of fees
Every fee on your statement comes from one of two places.
Card network charges come from Visa, Mastercard, Discover, and American Express. They include interchange and network fees, sometimes listed as assessments, dues, or brand fees. Your processor passes them through, and they are rarely negotiable for small businesses. You can still check that they are passed through at the published amount.
Processor charges are the processor's own pricing. They cover its costs and its margin, and many of them carry names that sound official. These are the fees worth questioning.
Before you start, pull your last twelve statements if you can. Some fees appear once a year, and a single statement will miss them. Our guide on how to read a merchant statement shows where the fee section sits on most layouts.
The thirteen fees
| # | Fee | What it is | What to ask for |
|---|---|---|---|
| 1 | Statement fee | A monthly charge for producing your statement | Removal, or an online statement at no charge |
| 2 | Paper statement fee | An extra charge for mailing a printed copy | Switch to electronic statements |
| 3 | Batch or settlement fee | A charge each time you close out the day's sales | Removal, or a few cents at most |
| 4 | Monthly minimum | A top-up when your processing fees fall below a set amount | Removal, especially if your business is seasonal |
| 5 | Annual or membership fee | A yearly charge, often billed in a single month | Removal |
| 6 | PCI program fee | The processor's charge for its compliance portal | Waiver |
| 7 | PCI non-compliance fee | A penalty for a missing annual security questionnaire | Complete the questionnaire, then ask for recent charges back |
| 8 | Gateway fee | A monthly charge for online or virtual terminal access | Removal if you do not use it; a lower rate if you do |
| 9 | Regulatory, compliance, or industry fee | A processor charge with an official-sounding name | A written explanation, then removal |
| 10 | Marked-up network fees | Real network charges passed through above the published amount | Pass-through at cost |
| 11 | Chargeback and retrieval fees | Charges when a customer disputes a sale | A lower per-dispute fee in your agreement |
| 12 | Equipment rental or protection plan | Monthly charges for a terminal or coverage you may not need | Buy the terminal outright or cancel the plan |
| 13 | Account maintenance or customer service fee | A monthly charge for having an account | Removal |
A few of these deserve more detail.
Monthly minimums
A monthly minimum says that if your processing fees for the month fall below a set amount, often $25, you pay the difference. A business that processes plenty of volume never sees it. A seasonal business or a new one can pay it every slow month. Ask for it to be removed, and if your processor will not remove it, ask for a lower floor.
Fees with official-sounding names
Lines labeled regulatory fee, compliance fee, or network access fee can be anything. Some are real network charges. Visa, for example, charges acquirers a fixed acquirer network fee, often shortened to FANF, and processors usually pass it to merchants as a monthly charge. Others are processor revenue with a name chosen to discourage questions.
Ask in writing which card network charges the fee, under what name, and at what published rate. If the processor cannot point to a network source, treat the fee as processor pricing and negotiate it like any other.
PCI fees
PCI fees come in two forms, and the difference matters. The program fee pays for the processor's compliance tools. The non-compliance fee is a penalty that usually stops once you complete your annual questionnaire. Both are explained in PCI compliance fees: what you owe.
Equipment charges
Equipment rental and protection plans can quietly cost more over a year than the terminal is worth. If a separate leasing company bills you, the charge may not appear on your processing statement at all. To check, see the real cost of terminal leases.
Add it up before you call
Make a simple table: each fee, its monthly amount, and its yearly total. Five fees averaging $15 a month come to $900 a year. Add a $99 annual fee and a $25 monthly minimum charged in four slow months, and the total comes to about $1,100 before you have touched your rate.
That yearly number is your opening point. Processors respond to specific requests with dollar amounts attached. Our plan for negotiating lower processing fees includes a call script.
Keep the savings
Fees removed after a phone call have a way of coming back. Ask for confirmation by email that lists each fee and its new amount. Then check your next three statements. If a removed fee returns, forward the confirmation and ask for a credit.
Frequently asked questions
Are card network fees negotiable?
Rarely for small and mid-size businesses. Interchange and network fees are set by the card networks. What you can do is confirm your processor passes them through at the published amount and has not added a margin to them.
What is a monthly minimum fee?
It is a charge that tops up your processing fees to a set amount when a month's fees fall short. Seasonal and new businesses pay it in their slow months. Many processors will remove it or lower it on request.
Can a processor add new fees after I sign up?
Most merchant agreements allow fee changes with notice, which is often a short message printed on your statement. Read the message box on each statement and question any new line item when it first appears.
What is the FANF fee on my statement?
FANF stands for fixed acquirer network fee, a monthly Visa charge to acquirers that processors usually pass on to merchants. It is a real network fee. You can ask your processor to show that it is passed through at Visa's amount.
Sources
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