When a business sets up a merchant bank account with a merchant service provider, various fees are required to establish that account. One of these fees is a monthly “statement fee.” This is a fixed fee that is charged monthly and is associated with the statement that is sent to a merchant for approximately thirty days’ worth of credit card processing (one billing cycle) by the merchant account provider.
This statement reveals, in comprehensive detail, exactly how much transaction processing was completed by the business in the course of the month and the exact type of fees that resulted. Statement fees are also called “maintenance fees” or “account fees” by some firms. Besides the monthly transaction summaries, the statement fee also pays for any 800-number, toll-free customer assistance and support a company may need for its merchant account.
Typical statement fees can range anywhere from five to ten dollars per month. If a merchant conducts a significantly large number of transactions, this fee can sometimes be waived altogether. This waiver also applies to several other fees associated with merchant bank accounts that many merchant service providers charge, such as the setup fee, the application fee, annual fees, AVS fees and other fees. Account providers are willing to waive fees in order to gain more accounts.
In the majority of cases, transaction fees, discount rates, gateway fees and monthly minimums fees more than cover requisite expenses for establishing and maintaining a merchant account. However, if a printed statement is sent to a merchant’s address, by law it must incur a fee for processing. Of course, even this amount can be credited back to a valuable merchant in any number of ways.