Comments on: The Monthly Minimum Explained

By: mss

mss — Fri, 07 Mar 2008 21:24:59 +0000

Tomer, the provider does have to earn too but he has many different options to charge fees and the monthly minimum is not the most appropriate one. In today’s world, you have to have your customers’ best interest at heart if you want to be successful, even if it comes at the expense of an extra dollar of revenue. Charging a monthly minimum is not in the best interest of the customer.

By: Tomer

Tomer — Sat, 10 Nov 2007 21:02:00 +0000

I don’t agree that you should always say no with minimums. The provider has to earn too, if it doesn’t on the monthly minimum, the discount fee would be higher.

So if you are a large stable merchant with more than a few grand per month, a monthly minimum may be good because you won’t pay it anyways and that way you probably get a better discount fee.

By: brad

brad — Tue, 03 Oct 2006 05:01:54 +0000

Yeah thats very helpful, we have checked few processor such as ChronoPay, velocitypay, pppay for EU, they dont charge monthly or annual fees.

http://www.electronic-payments.co.uk/product_data.jsp

By: Leonard J. Mills

Leonard J. Mills — Wed, 06 Sep 2006 08:06:55 +0000

John,

I got how it works now. Thanks…

By: Leonard J. Mills

Leonard J. Mills — Mon, 04 Sep 2006 16:10:59 +0000

Thank for the first two answers…

3) Since I have an offer no monthly minimum fee. How much would I have to pay for 2.10% discount fee…

By: John Conde

John Conde — Mon, 04 Sep 2006 14:33:31 +0000

1) You should not accept a monthly minimum. They only serve the interests of the merchant account provider. Not the merchant.

2) No. Because the fees incurred ($25) meet or exceed the monthly minimum fee ($25). As a result of meeting the monthly minimum no extra fee is incurred.

3) Your statement, “A qualified rate is given to us to process minimum sales or we pay the monthly minimum fee.” is incorrect. The monthly minimum fee is an extra fee that not all processors charge. You have to pay a qualified fee as it is how Visa and MasterCard work. The monthly minimum fee is an extra fee charged by merchant account providers, not by Visa and MasterCard, and it uses to the qualified rate to help determine if you pay that fee.

Hope that helps.

By: Leonard J. Mills

Leonard J. Mills — Mon, 04 Sep 2006 07:18:38 +0000

John,

1) In the above article does your â€œThanks. But no thanksâ€ mean should I accept a monthly minimum fee or NOTâ€¦

2) Letâ€™s say I got 2.30% VISA/MasterCard Qualified Discount Rate, and my monthly minimum fee is $25. I processed $1,087 this month (2.30% X $1,087), so I have met the monthly minimum. Do I still have to pay my monthly minimum fee of $25â€¦?

3) One processor gives 2.10% VISA/MasterCard Qualified Discount Rate and says no monthly minimum fees. I am confused here. A qualified rate is given to us to process minimum sales or we pay the monthly minimum fee. If that is right then why is the processor at all giving us the 2.10% discount fee? What does he mean hereâ€¦?

Please clear me of thisâ€¦