Credit card processors typically expect merchants to process a minimum volume of transactions each month. Some processors apply the full dollar amount of their clients’ transactions to that minimum, but most utilize minimums to generate a certain amount of fees. In the latter case, processing fees are only applied to monthly minimums, with the difference charged when merchants fail to meet the monthly minimum. Additional fees are typically not imposed by mobile credit card processors.
Payment Card Industry (PCI) regulations are designed to protect both merchants and customers from fraud and security breaches. Traditional card processors that set merchants with individual accounts charge PCI-compliance fees charged monthly, quarterly or annually. Aggregators and mobile card processors do not charge PCI-compliance fees. Merchants that have been certified as PCI-compliant or handle PCI-compliance in house may be able to avoid these fees. Monthly fees for merchants that fail to establish PCI-compliance or for merchants that allow PCI-compliance to lapse can be steep.
Address Verification Service (AVS) is a fraud-prevention tool associated with eCommerce card processing or with manually keying in a card number or for transactions made by phone. AVS fees are lower for automated processing than for transactions involving live operators.