Minimum monthly service charges on card payments

Your comparison checklist

A floor and a fixed fee are different

Global Payments defines an MMSC in its quotation summary as an amount payable when monthly transaction charges do not reach an agreed minimum. This is a different calculation from adding the whole minimum to every month's processing fees.

Ask for the precise charge basis in your own agreement. It may apply per merchant account or outlet, and different providers may include different charges in the qualifying total. The label alone is not enough to tell you how a particular bill was calculated.

Work through a quiet-month example

Suppose the agreed minimum is £25 and qualifying processing charges are £9. The top-up is £16, so the processing total becomes £25. If £18 terminal rental is payable separately, the combined cost is £43 before other charges. These are invented figures.

If the next month's qualifying charges are £80, no top-up is needed in that model. Adding £80 + £25 would overstate the processing cost. Equally, reading a £16 top-up line as the entire bill would understate the quieter-month cost.

Calculate when the floor stops affecting you

For an illustration with only a 1% processing charge and a £25 minimum, £2,500 of monthly card sales produces £25 of fees. Below that sales level the minimum applies. This simple threshold changes when pence charges, different card rates or a different minimum basis are involved.

For an established business opening another location, run the calculation for the new site's initial trading months. A strong group total does not automatically remove a minimum applied separately to an outlet. Obtain written confirmation of whether costs are assessed together or separately.

Compare a representative year

Use expected trading months separately if the business is seasonal. Twelve times a peak month's cost will not describe a year with closures or low-season trading. Conversely, applying one quiet month's high effective rate to every month can exaggerate the ordinary cost.

Build a month-by-month list of card sales, qualifying charges, top-up and rental. The annual effective cost is total relevant costs across the year divided by total card sales across the year. Keep closure-period obligations and any agreed suspension arrangements visible.

What to ask before requesting an alternative

Ask whether the charge is a top-up or a separate service fee, which costs count towards it, which accounts it applies to and what happens during temporary closure. A charge for a security service, a subscription and an MMSC can have different purposes.

If a different arrangement appears cheaper, compare the complete year, equipment commitment and exit cost. Awais can review a proposed takepayments / Global Payments setup against the figures you provide; no universal minimum or saving is promised on this site.

Common questions