The short answer
A monthly minimum guarantees the processor a floor of revenue from your account. If your discount fees for the month fall below the minimum — commonly $25 — you are billed the difference. It exists to make quiet months profitable for the provider, not to cover any cost.
Who it hurts
Seasonal businesses, new businesses and anyone with a slow quarter. A ski shop doing $4,000 in July pays the minimum every summer month. Over a decade that is real money paid for nothing.
How to get rid of it
Ask. Monthly minimums are frequently waived, particularly when a merchant is comparing offers. If a provider refuses to waive a minimum on a healthy account, that tells you how the rest of the negotiation will go.
Key takeaways
- The minimum is charged only when you are already having a bad month
- Seasonal businesses pay it disproportionately
- It is one of the easiest fees to have waived
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