Annual Compliance Fees

Do all credit card processing companies have annual compliance fees that are litigated by the government? Or is this just a great way for them to make an extra $100 - $150 bucks.

I signed up for a cc processing company and they told me there was no annual fee, then they charged me an annual "compliance" fee after a year. They charge $10 for a paper invoice each month, so I opted to not receive them, as I don't really look at them every month anyway. Then they hit me with a fee of $125; they charged it to my account and I didn't even know it was coming. No email notification from them at all.

Is this standard??

[Jeanie]

I Am Sure It Was Somewhere In The Fine Print..that Kind Of Stuff Has To Be Noted To You Somewhere..

In September 2008, First Data, one of the largest processors in the country, implemented "PCI Compliance Fees" for all of their customers. Any sales organization, Wells Fargo, etc., (go to their site for a list) or any secondary sales organization working under one of their bank/sales agents, will pass this cost along to the customer. There are hundreds if not over a thousand companies processing through First Data. The charge is typically $139.75 with a notice that you must contact their scan vendor or else you continue to be charged $19.95. I have seen a charge for only $40 as well.

I have also seen PCI Compliance fees charged by HSBC (which uses "Global") and companies processing through them for about $79.

This is not a standard fee levied by all processors. Most processors do not have a full disclosure fee policy. Somewhere in the fine print it essentially says they can charge you whatever they want. And since they have full access to your bank account, it's very hard to protest these fees.

I have had experiences where it was very easy having the fee removed, but really, why do business with a company that engages in these practices to begin with?

PCI Compliance should be a serious concern because Visa/MC can levy hefty fines for data breaches, but smaller merchants who keep their data secure and understand what their responsibilities are, do not have an obligation to have their compliance verified.