Top 10 Hidden Fees on Your Merchant Statement You Might Be Missing

Credit card processing is a competitive industry, and some providers rely on fee complexity to maintain margins. Hidden fees can increase your effective rate by 0.5% or more — costing a business processing $50,000 per month an extra $3,000 per year. Here are the top 10 hidden fees you need to know about.

1. PCI Non-Compliance Fee

If you have not completed your annual PCI DSS self-assessment questionnaire, processors charge a monthly non-compliance fee ranging from $19.95 to $99.95. The fix is simple: complete the questionnaire through your processor's portal.

2. Batch Processing Fee

Every time you settle your daily transactions, some processors charge a batch fee of $0.10 to $0.30. Over 30 days, that is an extra $3 to $9 per month that rarely appears in rate quotes.

3. Statement Fee

A monthly charge for generating and mailing your statement, typically $5 to $15. Many processors offer paperless billing at no charge — ask if this fee can be waived.

4. Regulatory Product Fee

This vaguely named fee appeared on many statements after the Durbin Amendment. It ranges from $2 to $10 per month and is a pure processor markup with no regulatory basis.

5. IRS Reporting Fee (1099-K Fee)

Processors are required to report your income to the IRS, and some charge $2 to $5 per month for this service. Since reporting is mandatory and automated, this fee is pure profit for the processor.

6. Annual Fee

Some processors charge an annual account maintenance fee of $79 to $199 that only appears once per year — making it easy to miss on a single month's statement.

7. Early Termination Fee

While not a monthly fee, many contracts include early termination fees of $295 to $595. Always read contract terms carefully before signing.

8. Minimum Processing Fee

If your monthly processing volume falls below a certain threshold, you may be charged the difference. Minimum fees typically range from $15 to $35 per month.

9. Gateway Fee

For ecommerce merchants, a monthly gateway fee of $10 to $25 is standard. However, some processors charge this even for in-person only businesses that do not need a gateway.

10. Next-Day Funding Fee

Standard funding takes 1-2 business days. If your processor offers next-day deposits, there may be an additional monthly fee or a per-transaction surcharge for this convenience.

Take Action Today

Review your last three months of statements and look for each of these fees. If you find charges you do not understand, contact your processor for an explanation — or reach out to Mogil Partners for a free statement analysis.