{"id":155,"date":"2008-06-25T14:12:13","date_gmt":"2008-06-25T19:12:13","guid":{"rendered":"http:\/\/www.merchantaccountblog.com\/?p=155"},"modified":"2008-06-25T14:12:13","modified_gmt":"2008-06-25T19:12:13","slug":"fixed-fees-destroy-low-rates","status":"publish","type":"post","link":"https:\/\/www.merchantequip.com\/merchant-account-blog\/155\/fixed-fees-destroy-low-rates","title":{"rendered":"Fixed fees destroy low rates"},"content":{"rendered":"<p>I hate seeing yearly and other fixed fees with merchant accounts. As if its not enough that a business is being charged for every transaction processed, some companies feel the need to charge yearly, monthly, daily, peak-season, miscellaneous, <a href=\"http:\/\/www.merchantequip.com\/merchant-account-blog\/archives\/336\">PCI compliance<\/a>, and other fees just for using their service.<\/p>\n<p><center><img decoding=\"async\" src=\"https:\/\/www.merchantequip.com\/merchant-account-blog\/images\/fixed-fees.gif\" alt=\"Fixed Fees\" class=\"nofloat\" \/><\/center><\/p>\n<p>These fees make short work of any great deal that you were supposed to get. Personally, I recommend avoiding providers with high fixed fees unless there is some extenuating circumstance where you can only get approved with a processor that has them.<\/p>\n<p><strong>Let&#8217;s take a look at how fixed fees affect overall processing costs:<\/strong><\/p>\n<p>Let&#8217;s say your end of month cost for $8,000 is sales is $150, of effectively 1.88%.<\/p>\n<p>With a $20 fixed fee, this effective rate jumps to 2.13% which is an increase of almost 15%. Add a few more in and the additional cost can easily make up 50% of you bill.<\/p>\n<p>More than just fixed fees can be factored into this equation. If your transaction fee ends up costing $20 more per month with one service provider, it has the same affect as a fixed fee. When you&#8217;re looking to get setup processing, it&#8217;s important to understand how certain types of fees and the way they are presented will affect your monthly cost. My recommendation is to work backwards. Start by <a href=\"http:\/\/www.merchantequip.com\/merchant-account-blog\/archives\/277\">ignoring the discount rate<\/a> and look at everything else you will be paying.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I hate seeing yearly and other fixed fees with merchant accounts. As if its not enough that a business is being charged for every transaction processed, some companies feel the need to charge yearly, monthly, daily, peak-season, miscellaneous, PCI compliance, and other fees just for using their service. These fees make short work of any [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-155","post","type-post","status-publish","format-standard","hentry","category-merchantaccounts"],"_links":{"self":[{"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/posts\/155","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/comments?post=155"}],"version-history":[{"count":0,"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/posts\/155\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/media?parent=155"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/categories?post=155"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.merchantequip.com\/merchant-account-blog\/wp-json\/wp\/v2\/tags?post=155"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}