Legal Term
Hidden Fees in Credit Card Processing Agreements
Legal Definition
Undisclosed or insufficiently transparent charges within merchant service agreements for credit card processing, including but not limited to monthly minimums, termination penalties, assessment fees, and compliance costs, which may be buried in ancillary clauses or referenced indirectly, violating principles of fee transparency under regulations like the Truth in Lending Act and state unfair trade practices laws.
In Plain English
Secret extra costs that businesses pay for credit card processing services, which aren't clearly listed in the contract and can surprise you with higher bills later.
Example in a Contract
Section 7.3: 'Processor reserves the right to pass through any and all network, association, or government-imposed fees, including but not limited to NACHA and PCI DSS compliance fees, which shall be charged to Merchant's account without prior notice and are non-negotiable.'
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