--- title: What Is a Monthly Minimum Fee? description: Processing credit cards? Then you likely have a monthly minimum in processing fees to keep in mind. Learn what can trigger a monthly minimum fee. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/monthly-minimum-fee.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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Whenever a service is rendered, it generally comes at a cost, which is why [Merchant Account Providers](https://blog.payjunction.com/merchant-account/) charge monthly minimum fees. In brief, a monthly minimum fee is imposed on a business when it doesn’t process sufficient volume to cover a predetermined amount in processing fees. It essentially guarantees payment on the account. Only processing fees paid to your provider count toward the minimum, as opposed to fees to your gateway, fees related to chargebacks, etc. While low rates may appeal to small businesses processing low transaction volumes, rates that are too good to be true can be just that, given how minimums vary by provider, as do the processing fees that count toward it. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## How Your Rate Plan Affects Your Monthly Minimum Fee On any given transaction, businesses on an Interchange-plus pricing model pay Interchange (the wholesale cost dictated by the card brands) plus a consistent markup set by the provider. Some providers count the entire processing cost (Interchange and markup) toward the minimum, while others may exclude Interchange and count only the markup. ![Interchange-plus-rate-1 (2)](https://blog.payjunction.com/hs-fs/hubfs/BLOG/BLOG%20IN-LINE%20IMAGES/Interchange-plus-rate-1%20(2).jpeg?width=760&name=Interchange-plus-rate-1%20(2).jpeg) Ideally, monthly minimum fees make up the difference between an established monthly minimum and the amount garnered from processing fees. For example, if the fees for a given month total $14.50 but the minimum is $35, the monthly minimum fee will be $20.50. Businesses that run $5,000 and more in monthly transactions generally manage to avoid monthly minimum fees, but small or seasonal businesses on an Interchange-plus rate plan encounter them more frequently. To avoid this, lower-volume businesses might consider a Flat Rate plan. Offered by [Payment Facilitators](https://blog.payjunction.com/payment-facilitator-definition/) like Square, Stripe and PayPal, Flat Rate pricing comes with higher processing fees. That said, customers bypass minimums because they don’t have individual merchant accounts. Instead, Payment Facilitators lend their customers shared merchant accounts. This approach comes with its own [host of drawbacks](https://blog.payjunction.com/paypal-holding-funds/), but can be more appropriate for low-volume businesses. ![Flat](https://blog.payjunction.com/hs-fs/hubfs/BLOG/BLOG%20IN-LINE%20IMAGES/Flat.jpeg?width=760&name=Flat.jpeg) It’s recommended that you keep track of your monthly minimums, account stipulations and merchant account statements to prevent any [unethical billing practices](https://blog.payjunction.com/tag/unethical-billing/) from taking place. This will help you determine whether your provider is charging you fairly and whether you’re on the best rate plan for your business. ## Deciding which rate plan to go with? [![HERE'S SOME ADVICE FOR THAT](https://no-cache.hubspot.com/cta/default/635739/85ab1881-4b6b-41e9-ac2b-1c18f2397f4b.png)](https://cta-redirect.hubspot.com/cta/redirect/635739/85ab1881-4b6b-41e9-ac2b-1c18f2397f4b) Take a look at your monthly merchant statements. Does the monthly fee listed add up? Let us know what you're seeing in the comments section below. [Merchant Account](https://blog.payjunction.com/topic/merchant-account) [Rates](https://blog.payjunction.com/topic/rates) [Questions and Answers](https://blog.payjunction.com/topic/questions-and-answers) [Credit Card Processing](https://blog.payjunction.com/topic/credit-card-processing) --- ##### [![ACH Rejects: 4 Codes Business Owners Should Know](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/ach-reject-codes.svg) ACH Rejects: 4 Codes Business Owners Should Know](https://blog.payjunction.com/ach-reject-codes) ##### [![Streamline Online Payment Forms With JotForm and PayJunction](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/jotform-online-payment-forms.svg) Streamline Online Payment Forms With JotForm and PayJunction](https://blog.payjunction.com/jotform-online-payment-forms) ###### About Author ![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=200&height=200&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) ### Christina Lavingia Christina Lavingia delights in crafting content that helps business owners fight fraud, reduce risk and process payments with ease. ###### Related Posts ## [![What Does Credit Card Processing Cost?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-cost.svg) What Does Credit Card Processing Cost? There are a number of payment providers that enable you to accept credit cards. Whether you interact with them directly or not, there are a handful of fees you have to pay for the privilege of accepting plastic.](https://blog.payjunction.com/credit-card-processing-cost) ## [![How to Avoid a Monthly Fee for Small Business Credit Card Processing](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/credit-card-processing-for-small-business-no-monthly-fee.svg) How to Avoid a Monthly Fee for Small Business Credit Card Processing It can seem unfair to be charged money simply for the privilege of accepting credit card payments at your small business. After all, not accepting credit cards could result in a significant amount of money left on the table and often isn’t feasible when your goal is to generate enough revenue to keep your doors open.](https://blog.payjunction.com/credit-card-processing-small-business-no-monthly-fee) ## [![How Andean Chevrolet Reduced Monthly Processing Fees from $40k to $6k](https://blog.payjunction.com/hubfs/ANDEAN.png) How Andean Chevrolet Reduced Monthly Processing Fees from $40k to $6k Credit card processing fees were quietly draining margin at Andean Chevrolet. In June alone, the dealership spent nearly $40,000 on credit card processing. That level of expense limited their flexibility, and hurt their bottom line profit.](https://blog.payjunction.com/andean-chevrolet-reduce-fees-and-surcharging-case-study) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. 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