Annual Fee

An annual fee, also known as a renewal fee, subscription fee, or membership fee, is a yearly charge levied by some independent sales organizations (ISOs) and acquirers to maintain a merchant's account. This fee covers administrative costs, account maintenance, and other services provided by the ISO or acquirer to support the merchant's payment processing capabilities. The annual fee is common in the financial services industry and is one way for service providers to ensure a stable revenue stream while offering ongoing support and services to merchants. This fee is typically stipulated in the merchant service agreement and can vary based on the level of services provided.