High Risk Merchant Account Fees and Costs

Getting a high risk merchant account can be complicated enough without having to figure out all the costs and fees, including which ones are valid and which ones are bogus (and some companies might charge bogus fees, so be careful). Here are some common fees that you should expect to see and why they are charged to your account:

Transaction Fees- This is a per transaction cost for processing credit card purchases. Any time a credit card is swiped or keyed in, transaction fees are charged to the account holder.

PIN Debit Fees- When customers utilize a debit card with a pin number, there is a fixed transaction fee that has to be paid.

Discount Rates- This type of fee is a percentage of each transaction. It is generally lower for cards that are swiped and higher if cards are keyed in or used in internet sales.

AVS Fees- Address Verification Service transaction fees are charged to high risk merchants who don’t swipe cards. Using this service allows internet and telephone merchants to verify the address and zip code of the cardholder, which helps reduce fraud.

Daily Batch or ACH Fees- This type of fee will be charged by some processors as a fee for settling the daily funds and then transferring the funds into the bank account. On a day where no transactions are performed, this fee is not charged.

Monthly Support/Service/Statement Fees- Monthly fees are charged by high risk credit card processors as a fixed fee. The fee pays for a monthly statement and toll free support calls that are needed on the account. It’s a typical fee to see and is very reasonable as far as costs and fees are concerned.

Internet Gateway Fee- This fee is charged with internet merchant accounts and is charged on a monthly basis. It is usually billed by the gateway provider, but can also be billed by the high risk processing service.

Voice Authorization Fees- These fees are only charged when an authorization call is placed because terminals or software aren’t working. This service is rarely used.

Setup/Application Fees- These are charged for setting up the account. It’s not as common as it used to be, and many providers will forego it in setting up a new high risk merchant account.

Monthly Minimum Fees- This is NOT an extra charge, but a stated amount of what the minimum fees taken from your account each month need to be. For example, if an account has $30 in fees and the minimum is $32, the extra $2 will be charged at the end of the monthly cycle.

Surcharge, Partial, or Non-Qualified Fees- These fees are all basically the same thing, but can show up under different names in various accounts. These are typically charged for corporate cards, international cards, and some other credit cards that are non-standard for acceptance.

Chargeback Fees- These are fees that are charged when a customer disputes a transaction and a refund needs to be made.

Cancellation, Termination Fees- These typically are put in place for anyone who cancels their account prior to the end of the contract.

Annual Fees- Annual fees are charged for having the account in some instances, but not all high risk credit card processors charge this fee.

Junk/Hidden Fees- These can have any number of names and descriptions, and are useless fees that are charged by unscrupulous merchant account providers. You need to get a list of fees that you will pay and their exact costs to compare to your first statement to ensure that you’re not being hit with hidden fees. If you’re not sure what you’re being charged for, ask. If something sounds uncertain or doesn’t seem legitimate, find another provider.

High Risk Processor specializes in High Risk Merchant Accounts, High Volume Merchant Accounts and Offshore Merchant Accounts. High Risk Merchant Accounts include such industries as mail order, telephone orders, adult entertainment industry, direct marketing industry, dating, online dating and escort services, outcall services, travel, telecom, timeshares industry, herbal supplements, diet companies, subscription services, membership services and clubs, ticket sales, MLM merchant accounts, multi-level marketing businesses, bail bonds, pawn shops, water filtration systems merchants, collection agencies, auto rental companies, rare coin and collectible shops, computers, custom design products, software sales and service, detective services, door to door sales, massage parlors, gun shops, hair restoration services, cosmetic surgery, high-end ticket sales, high volume merchant accounts, home based and telecommuting businesses, fortune tellers, infomercial merchant accounts, insurance products, investment products, custom jewelry sales, multi level marketing, MLM organizations, phone sales, internet businesses, seminars, educational institutions, sports collectibles, used auto sales, water purifier sales, weight loss centers, vitamin and herbal supplement stores, international merchants, companies facing high chargebacks, etc.  
For additional information about this article or about obtaining High Risk Merchant Accounts, please call 702-454-0760 or email info@highriskprocessor.com.