Also called: Monthly fees, Scheduled account fees
What recurring fees are
Recurring fees are charges billed on a schedule for your merchant account or related services. Unlike a processing rate that applies to each sale, a fixed account fee can still be charged in a month when you make no sales. Providers set their own fees, while some recurring charges are network fees passed through by the provider.
These fees are different from recurring payments. A subscription business charges its customer on a schedule; recurring fees are charges to your business for payment services. A payment service that advertises no monthly account fee can still charge per transaction or for optional products.
A fee that repeats without a sale still comes out of your margin.
What they can cost
A guide updated August 8, 2024, listed monthly account fees from $0 to $199, mailed statement fees from $7 to $10 per month, and online reporting fees from $5 to $15 per month. It also listed annual fees from $0 to $300 and PCI compliance fees from $60 to $130 per year. These are reported ranges, not standard rates or current quotes.
A monthly minimum is different from an account fee: it is charged when your processing fees fall short of a stated minimum. The same 2024 guide listed monthly minimum fees of $5 to $25, but gave no universal sales threshold. Review how your agreement calculates the shortfall before treating it as a flat monthly charge.
Where they appear on your statement
Look for separate entries such as “Monthly Account Fee,” “Statement Fee,” “Online Reporting Fee,” and “Monthly Minimum.” Annual charges may appear only once a year, so compare several months of statements and your agreement rather than relying on one billing cycle.
Match each line to a service you use. A statement fee for mailed copies is a separate charge from an online reporting fee. A gateway, software, or equipment charge can also be recurring, but it should correspond to a service or lease your business chose. Fees passed through from a card network are not the same as provider markup.
Why they matter to your business
Fixed charges reduce your margin regardless of sales volume. For example, a $15 monthly charge costs your business $180 over 12 months, even if the service is rarely used. Several small charges can therefore matter as much as a larger fee when they repeat for years.
Recurring billing software and monthly merchant-account fees are separate products and costs. Compare the service charge with the processing fees on your statement, and check for duplicate charges for reporting, account access, or support.
What you can actually change
- List every repeat charge. Review 12 months of statements for monthly, quarterly, and annual fees. Include charges that appear under different names.
- Match fees to services. Compare each charge with your agreement and the services your business uses. Flag duplicate reporting, support, or account charges.
- Question provider markup. Ask for removal or a lower price on provider-set charges you do not use. Network fees cannot be negotiated, but provider fees and some monthly minimums can be.
- Check the billing terms. Look for the fee amount, billing frequency, minimum calculation, and any terms allowing fees to change. Compare the new charges with later statements.
Frequently asked questions
Are recurring fees the same as recurring payment fees?
No. A recurring payment is a scheduled charge to your customer, such as a subscription payment. A recurring fee is a scheduled charge to your business for an account or service. A business can pay processing fees on recurring customer payments and also pay separate monthly account fees.
Do recurring fees apply when I make no sales?
A fixed monthly account or service fee can still be charged when your business has no sales. A monthly minimum works differently: it applies when your processing fees fall short of the stated minimum. Check the statement and agreement for the calculation.
Which recurring merchant fees should I review first?
Start with monthly account, statement, online reporting, and monthly minimum charges, then check annual fees and recurring charges for equipment or software. Match each line to a service you use and compare the amount with your agreement.
Can recurring fees be negotiated?
Provider-set fees, such as account charges or some monthly minimums, can be negotiable. Fees charged by card networks cannot. Separate network pass-throughs from provider charges on your statement before asking for a reduction.