Discount Rate: “Discount Rate” shall mean a percentage of the total sales submitted to Bank for processing. The Visa, MasterCard, American Express, Discover and PayPal Discount Rate listed in the Merchant Application & Agreement applies to “Qualified Transactions” (American Express – “Tier 1”) only. If the version of the application lists a Credit Card Discount Rate (for Visa, MasterCard, American Express, Discover and PayPal) the rate shall apply to Qualified Credit Card (American Express – “Tier 1”) transactions. If the Agreement lists a Check Card Discount Rate it will apply solely to Qualified Check Card transactions. If the Agreement lists a Credit/Check Discount Rate the rate would apply to Qualified Transactions for both Credit Cards and Check Cards.
Qualified transactions are those in which an authorization was obtained electronically, the transaction was settled within the appropriate time frame, and the transaction meets all other requirements imposed by the bank card brands. Other transactions are categorized as “Mid-Qualified” or “Non-Qualified” transactions. Mid-Qualified transactions include but are not limited to those transactions where the card is affiliated with a special issuer program or did not meet requirements imposed by the bank card brands. Non-Qualified transactions include but are not limited to those transactions where the authorization was obtained by calling a voice or Voice Recognition Unit (VRU) authorization number, the card is affiliated with a special issuer program, the transaction was not settled in the appropriate time frame, or the transaction did not meet the requirements imposed by the bank card brands. These “Mid-Qualified” or “Non-Qualified” transactions may be subject to increased fees and/or Discount Rate as determined by Bank.
Also, if you are a mail order telephone order or e-commerce MERCHANT, the bank card brands/organizations require additional data elements to be submitted as a part of the transaction record in order for the transactions to qualify for the lowest possible discount rate. Failure to submit the additional data elements or to meet all other requirements imposed by the bank card brands/organizations will result in the payment of a higher discount rate.
Brand Related Fees:
These fees are passed along to MERCHANT and may include an additional surcharge to cover bank sponsorship fees, bank reconciliation costs and other expenses associated with transaction processing.
“Transaction Fee” shall mean a fee charged on each sales draft and each credit draft regardless of the total stated.
“Authorization Fee” shall mean the fee charged on each transaction attempted whether approved or declined and whether or not the sale was actually charged.
“Batch Settlement Fee” will be charged on all batch settlements.
“Per Item Fee” shall mean the fee charged on each specified settled transaction.
“Monthly Minimum” fee may be charged, and if so, applies to Visa and MasterCard transactions only.
An “Annual Fee” of not less than ninety-five dollars ($95.00) per year may be charged and will be collected via ACH transfer within forty-five (45) days from the approval date of this Agreement and on the first business day of the anniversary month each year thereafter.
An Access Fee for Discover (ACCESS FOR DS) will be charged on a monthly basis.
“Monthly Maintenance Fee” will be charged for general account maintenance and online statement preparation.
“Network Inquiry Fee” may be charged, at the same rate as the applicable authorization or transaction fee, for any non-card specific or non-card identifiable transmission to the host.
“Retrieval Fee” (of not less than $10.00 per item) will be charged for each retrieval requested by card issuing bank.
“Chargeback Fee” (of not less than $25.00 per item) will be charged for each chargeback case worked.
“Return Draft Fee” (of not less than $30.00 per item) will be charged on any items returned by MERCHANT’s bank.
“DDA/DBA Change Fee” will be charged on any bank account change or name change on MERCHANT’s account.
“Voice Authorization Fee” (of not less than $0.95 per request) will be charged on each requested voice authorization.
Fees are charged for use of wireless terminals including, “Wireless Transaction Surcharge”, “Wireless Activation/Re-Activation Fee” and “Wireless Monthly Access Fee”, and are outlined in the Merchant Application & Agreement, if applicable.
“Merchant Benefits Package Monthly Fee” may be charged if MERCHANT wishes to utilize this service. The services included and associated fees are outlined in the Merchant Application & Agreement, if applicable.
Next Day Funding Program may be charged a Rate and/or Fee as outlined in the Merchant Application & Agreement.
“Regulatory Compliance Fee” will be charged in regards to application changes, MERCHANT notifications and other requirements resulting from changes in rules, regulations, or operating procedures, or any additional requirement imposed by any federal or state governmental agency or regulatory authority.
“PCI Fee” may be charged in association with a PCI DSS compliance program which Bank may make available through a third-party. Bank shall have the right to charge an annual or monthly PCI fee whether or not MERCHANT participates in the program.
“Non-Compliance Fee” may be charged on a frequency to be determined by Bank if MERCHANT fails to provide certification of PCI compliance, and maintain an annual certificate of compliance.
“Breach Protection/Secure Shield/Security Fee” may be charged for coverage in the event of a data compromise in connection with Breach Protection/Secure Shield or other Security Programs as available. Merchant Bank may modify or cancel the program at any time with or without notice. Bank does not warrant nor guarantee the terms and conditions of, or the features of, the Breach Protection/Secure Shield or other Security Programs.
“Early Termination Fees” may be charged, by service, as outlined in the Merchant Application & Agreement, and the Term; Termination section of the Merchant Processing Terms & Conditions, if applicable.
MERCHANT understands and agrees that Bank reserves the right to assess any associated fees not previously specified in the “Fees Section” of the Merchant Application & Agreement that are billed to Bank as a result of the device(s) or software used by MERCHANT communicating with any third party host.
Equipment Related Fees: Equipment supplies provided shall consist of (i) replacement of printer receipt paper and (ii) replacement of receipt printer ribbons only. Supplies provided are intended for use with Bank processing services only and Bank reserves the right to limit quantities based upon MERCHANT transaction history. Bank shall charge a shipping fee of not less than nine dollars ($9.00) plus applicable tax for each supply request. Additional fees will apply to orders above the standard quantities established by Bank.
Bank shall charge a fee not less than seventy-five dollars ($99.00) for shipping and handling on equipment exchanges or swaps and a fee not less than one-hundred seventy-five dollars ($295.00) for all premium equipment, including but not limited to, all wireless equipment and select check imagers. MERCHANT is required to return all defective equipment replaced by Bank to Bank. Bank may assess a restocking fee of not less than fifty dollars ($50.00) on all returned equipment. If equipment is not returned, Bank, at its sole discretion, may assess a fee for each piece of equipment not returned, including but not limited to, all wireless equipment and select check imagers. Bank reserves the right to assess a fee, to be determined by Bank, for equipment upgrades when compatible equipment is not available or when MERCHANT’s existing equipment is obsolete or no longer supported by Bank.
POS Terminals may be made available for use by MERCHANT free of charge (“complimentary equipment”), at Bank’s option. MERCHANT is required to return all complimentary equipment at the termination of the processing agreement with Bank. Failure to return the complimentary equipment may result in Bank assessing a fee for each piece of equipment not returned, including but not limited to wireless equipment and check imagers.
Bank shall have the right to adjust charges as necessary to offset any direct or indirect cost to Bank associated with providing services hereunder including, but not limited to, costs associated with collection and administration of chargebacks, fees charged by Visa, MasterCard, American Express, Discover, or PayPal, fees charged by other providers in processing, increases in the cost of living index or changes in rules, regulations, or operating procedures of Visa, MasterCard, American Express, Discover and PayPal or other applicable bank card brand/organization, charges for changes to MERCHANT accounts or information, adjustments in foreign exchange rates, or any additional requirement imposed by any federal or state governmental agency or regulatory authority, or due to any increases in communication costs charged to Bank by common carriers. Such charges shall, without prior notice, become effective as of the date of change. Upon any request from MERCHANT for copies of file information, account research, or other information, Bank may charge fees for such services, including per hour fees as determined by Bank. Without limiting the foregoing, Bank shall have the absolute and unconditional right to introduce new fees and increase Discount Rates, Transaction Fees, Authorization Fees, Per Item Fees, Statement Fees, Access Fees, Monthly Minimums, DF&A and any other fees for any reason when deemed appropriate in Bank’s sole discretion. Notice of changes will be available thirty days prior to the implementation.