What a statement fee is
Most card fees depend on your sales: a percentage, cents per sale, or both. Monthly fees do not. They are charged every month, whether you had a busy month or a slow one.
They go by many names. Common ones:
- Monthly service fee or account fee. A flat charge for having the account.
- Statement fee. A charge for your monthly statement, often only for a paper copy.
- Monthly minimum. A charge tied to a minimum amount of fees each month.
- PCI fee. A charge set by your processor for card security compliance. (PCI is the card industry’s data security standard.)
- Software or plan fee. A monthly price for point of sale software.
Published examples
| Provider | Monthly fees they list | Where listed |
|---|---|---|
| TD Merchant Solutions | Monthly service fee: “Varies”, per location. Minimum Monthly Discount Fee: $30 per location. Monthly paper statement fee: $5.00 plus taxes. PCI fee: $0 to $29.85 a quarter, per location | TD fee descriptions |
| Helcim | $0. “No account monthly fees. No minimums, software fees, or statement fees.” PCI fees $0 | Helcim pricing page |
| Stripe (Canada and US) | “No setup fees, monthly fees, or hidden fees.” | Stripe pricing pages |
| Square Canada | $0 Free plan. Plus “$35+” a month. Square for Retail Plus $79 a month per location | Square pricing pages |
| Square US | $0 Free plan. Plus $49 a month per location. Premium $149 a month per location | Square US pricing page |
TD also lists a one-time application fee of $49 to $99. For seasonal businesses, TD lists a Seasonal Monthly Service Fee of $4.95 per location and a one-time Seasonal Install Fee ($200 for the first device, $120 for each added device).
Square’s paid plans also change its per-sale rates in some cases. For example, Square US lists 2.5% + 15¢ in person on Plus, versus 2.6% + 15¢ on Free. See Per-Transaction Fees.
Monthly minimums explained
A monthly minimum is a charge linked to a minimum level of fees in a month. TD lists a “Minimum Monthly Discount Fee (MMDF)” of $30, per merchant location. (Visa’s Canadian rate sheet calls what merchants pay their acquirer a “merchant discount fee”.)
TD’s fee list does not explain how the minimum is calculated. Your agreement and Fee Schedule set the details. Ask your processor:
- What is the minimum, and is it per location?
- Is it a top-up to a set amount, or a flat charge when sales are low?
- Which fees count toward it?
How these work in slow months
Fixed fees cost the same every month. Your sales do not. So in a slow month, fixed fees are a bigger share of what you sell.
Seasonal businesses may see this most. Some providers have a seasonal option; TD lists separate seasonal fees, shown above.
Paper and electronic statements
TD’s terms say: “Your statement will be provided electronically, through a Merchant Online Portal. Should you require it, statements will be sent to you by mail upon request, and for a charge as set out in the Fee Schedule.” TD’s fee list shows that charge as $5.00 plus taxes.
TD’s terms also say you must report errors or omissions in writing “within 60 days of the statement date.”
On TD’s sample statement, monthly fees appear as their own lines, such as “PCI SECURITY MONTHLY FEE” and “MONTHLY SERVICE FEE”. How to Read Your Merchant Statement shows where they sit.
Which ones are optional under the contract
It depends on your agreement. Some fees can be avoided by a choice you make, such as an electronic statement instead of a paper one at TD. Others are set by the agreement.
Things to check in your contract:
- Which monthly fees apply, and whether each is per location.
- Whether a paper statement is optional.
- What notice the provider gives before raising a fee, and whether you can cancel without a penalty. TD’s Fee Change Summary reminds merchants they may cancel within 70 days after certain new or increased fees take effect. See Early Termination Fees.
PCI fees are covered in PCI Fees and Non-Compliance Fees. Equipment rental is covered in Equipment Leases.
Where to go from here
Fixed fees are the ones on a statement that are not a percentage or cents per sale. Their total, divided by card sales, is their share of sales. In a slow month, that share is higher. How fixed fees fit with the per-sale parts: How Much Does It Cost to Accept Credit Cards in Canada?
Want a partner to review your statement? We will put you in touch. Start the free statement review.