The Mastercard Merchant Location Fee: What Is it and How Much Is it Costing Your Business?

Let’s face it: There are a lot of fees on your merchant account statement. So many, in fact, that it sometimes feels like a full-time job going through them each month to make sure you’re still paying the best rates and not getting taken for everything you have. Mastercard added to the headache last year when they introduced their Merchant Location Fee, which charges businesses for each physical and online location that accepts its cards.

How much is the Merchant Location Fee costing your business? The fee is $15 annually per location, plus an additional $3 for each individual location where Mastercard is accepted. Businesses that are exempt from paying the fee include charitable organizations (MCC Code 8398), religious organizations (MCC Code 8661) and merchant locations processing under $200 in monthly Mastercard volume.

Where is the fee coming from? The fee comes directly from Mastercard and is charged to credit card processors. This impacts your business because, more often than not, those payment processors simply pass along the charges to the merchant. That means if you have multiple locations that accept Mastercard, your Merchant Location Fees can quickly add up. For example, a business with three brick-and-mortar locations plus an online store could end up paying more than $70 a year just for this one fee.

Our advice? Keep a watchful eye on your merchant account statement. With fees like this one, payment processors can pass on additional costs you may not even be aware of—which means it’s worth your time and effort to be meticulous in reviewing your merchant account statement each month. Otherwise, you could be paying too much on your rates and not even know it.

Merchant Broker can help you secure the best rates possible. Let our experts conduct a thorough assessment of your merchant account statement to secure the best rates available and lock them in to protect your bottom line from new and hidden fees. Call Merchant Broker today at 1-888-668-0733 or schedule a time to meet with us.

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