Avoiding Hidden Processing Fees
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Common Hidden Processing Fees to Avoid
Too often merchants are not disclosed their complete fee schedule before signing up with a Canadian processor. Below is a list of common hidden fees to watch out for when choosing a merchant account.
Helcim proudly chooses to not participate in any of these common industry practices.
Instead our merchants receive affordable processing rates with no hidden fees.
Undisclosed Percentages
Merchants are often sold on a low rate, but soon realize that a "qualified" discount rate does not apply to all of their transactions. Merchants should ask always ask their processor what their mid and non-qualified rates are.
Monthly Minimums
A monthly fee charged if your business does not process enough Visa or MasterCard transactions. Usually around $10 to $20 for each card brand.
Gateway Fees
Some merchant account providers do not offer integrated processing with their accounts, and charge additional monthly fees to access a third party processing gateway.
Annual & Semi-Annual Fees
Service fees charged on a annual or semi-annual basis, often for services that should be included as part of your basic processing package.
AVS & CVV Fees
An additional per-item transaction fee for using the Address Verification Service (AVS) or the Card Verification Value (CVV).
Push Fees & Direct Deposit Fees
Some processors only provide deposits on a weekly or monthly bases and charge additional "push fees" for speedier payments. Others charge a fee for depositing your funds into your bank account.
Non-Refundable Application Fees
Often added in addition to the setup fee, these non-refundable application fees are charged to the customer regardless if they are approved for credit card processing.
Rolling Reserve/Hold Back
A percentage of the merchant's processing volume held back for a period of usually 6 months. This is in additional to the standard processing fee percentages.
Safety Deposits
An upfront deposit, usually between $5,000 to $20,000, paid to the processor to be allowed to accept credit card payments.
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