A Guide to Merchant Services Fees

When choosing merchant services for your business, understanding fees is essential. These costs can directly impact your bottom line, so it’s crucial to know what you’re paying for and how to minimize expenses. At Fidelity Bank, we aim to provide transparent pricing and tailored solutions to help your business thrive. Let’s break down the types of fees you may encounter and how Fidelity Bank can support your payment processing needs.

What Are Merchant Services Fees?

Merchant services fees are the costs associated with processing credit and debit card payments. These fees cover the infrastructure and services needed to ensure secure, reliable transactions between your business, your customers, and their financial institutions. While these fees are unavoidable, understanding their structure can help you manage and potentially reduce them.

Types of Merchant Services Fees

1.	Transaction Fees
	•	Percentage Fee: A percentage of the transaction amount (e.g., 1.5%-3.5%).
	•	Flat Fee: A fixed amount per transaction (e.g., $0.10-$0.30).

2.	Monthly Fees
	•	Account Maintenance Fee: Charged for maintaining the merchant account.
	•	Gateway Fee: Using the payment gateway that connects your business to the payment processor.

3.	Chargeback Fees
	•	A fee is applied if a customer disputes a charge and requests a refund through their card issuer.

4.	Interchange Fees
	•	Paid to the card-issuing bank, based on the card type (e.g., debit vs. credit) and transaction method (e.g., online vs. in-person).

5.	Assessment Fees
	•	Paid to card networks (e.g., Visa, Mastercard) for processing card payments.

6.	PCI Compliance Fees
	•	Charged for ensuring your business adheres to Payment Card Industry Data Security Standards (PCI DSS).

7.	Equipment Fees
	•	Costs for leasing or purchasing POS terminals, card readers, or other equipment.

8.	Cross-Border Fees
	•	Applied when processing transactions from foreign customers or in different currencies.

9.	Early Termination Fees
	•	Charged if you cancel your merchant service contract before its term ends.

10.	Other Miscellaneous Fees
	•	Batch Processing Fee: Charged for settling transactions at the end of the day.
	•	Statement Fee: For generating monthly account statements.

How Fidelity Bank Simplifies Merchant Services Fees

At Fidelity Bank, we believe in transparency and simplicity. Here’s how we stand out:

Clear Pricing Structures: We provide straightforward fee schedules with no hidden costs.
Custom Solutions: Tailored pricing based on your business size, industry, and transaction volume.
No Surprise Charges: Our agreements are clear, and we’ll walk you through every detail before you sign.
Local Support: Our team is available to answer your questions and help you optimize your payment processing.

How to Minimize Merchant Services Fees

While some fees are unavoidable, there are steps you can take to reduce costs:

1. Encourage In-Person Transactions

Card-present transactions typically have lower fees than card-not-present transactions. Equip your business with modern point-of-sale (POS) systems to make in-person payments seamless.

2. Choose the Right Payment Processor

Work with a provider like Fidelity Bank that offers competitive rates and customizable plans.

3. Optimize Your Transactions

Avoid unnecessary fees by ensuring your systems are set up correctly. For example:

Use address verification services (AVS) to reduce fraud-related fees.
Batch your transactions daily to minimize batch fees.

4. Maintain PCI Compliance

Stay compliant with PCI DSS to avoid non-compliance penalties and protect customer data.

5. Monitor Your Statements

Regularly review your monthly statements to identify discrepancies or unexpected charges. Fidelity Bank’s local support team is here to help you interpret your statements and address any concerns.

Why Choose Fidelity Bank for Merchant Services?

Fidelity Bank is committed to helping businesses navigate the complexities of merchant services fees while delivering secure and efficient payment solutions. With our transparent pricing, tailored services, and dedicated local support, we make it easier for your business to succeed.

Trusted Local Partner: With deep roots in the community, we understand the unique needs of your business.
Innovative Solutions: From mobile payments to e-commerce gateways, we offer the latest tools to keep you competitive.
Expert Guidance: Our team is here to help you every step of the way, from setup to ongoing support.

Get Started Today!

Our experts will conduct a competitive analysis and help you choose the right business payment solutions. Whether you’re looking for POS system financing for businesses, affordable merchant accounts, or payment gateway solutions, Fidelity Bank is your trusted partner for merchant services tailored for local businesses.

Contact Us

Or call 1-800-388-4380 to schedule a free, no-obligation Cash Flow and Business Efficiency consultation.