Learning • 5 min read

Monthly Minimum Charges Explained

How UK merchant accounts use monthly minimum service charges, when they hurt, and how to spot them on your statement.

What is a monthly minimum charge?

A monthly minimum service charge (MMSC) is a floor on the fees your provider earns from you each month. If your transaction fees fall below the minimum, you pay the difference.

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When it hurts most

Seasonal businesses, holiday closures and quiet trading months. Low-turnover months can effectively double the effective rate you pay.

How to spot it

Look for a line called 'minimum monthly service charge', 'MSC minimum' or 'monthly threshold'. Cross-check against total percentage fees for the month.

Key takeaways

●Monthly minimums penalise quiet months and inflate your effective rate.
●Some providers waive minimums after negotiation, especially at higher volumes.
●Pay-as-you-go providers usually have no monthly minimum.

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