Something to be aware of when it comes to merchant account

Monthly minimums were originally established so that processors could cover costs on dormant merchant account. There is nothing wrong with this practice. What is wrong is when a processor advertises a misleadingly low monthly fee. When researching your processor remember to ask what the monthly minimum fee will be for your account. You need to know becuase the monthly minimum can be abused to advertise a misleadingly low monthly fee.

For example, a credit card processor could advertise a free account with no monthly fee, but then charge a monthly minimum of $100. A small business that only did a few hundred dollars in sales per month would likely never achieve the monthly minimum. At Merchant Accounts.ca we never have and never will have misleading pricing like this. Now that you are armed with this knowledge you will know the right questions to ask. You will be able to spot a potential problem when researching a processor for your business.

In Summary: As you can see, a monthly minimum is not a fee that you should ever actually be paying. If you receive a quote from a potential processor remember that the monthly minimum should only be setup to cover costs if your account is dormant. It’s not something you should be paying on a regular basis. If you operate a successful business that is active and trading then you should never actually pay a monthly minimum.

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