Merchant fees are transaction fees that a merchants bank account must pay whenever a customer uses a debit or credit card to purchase from their store. These fees are then paid to the card-issuing bank to cover fraud, handling, and bad debt costs, along with the risk involved in approving the payment. The fees can vary depending on the payment processor and the type of card used, but they are typically a percentage of the transaction amount or a flat fee. Some common types of merchant fees include:

• Monthly processing fees
• PCI compliance for security
• Closing accounts or early termination fees
• Bank charges
• Credit card fees
• Dispute management fees

Merchant fees are charged to businesses when customers make purchases using debit or credit cards. The fees can appear as a single, combined amount on the bills from the payment processor. To minimize merchant fees, businesses can research and compare payment solutions, understand the fees, and pass the expenses onto their customers.