If your contract includes a Minimum Volume Threshold, you need to process a specific volume of Payments each month. When your actual Payment volume falls below this threshold, you might be charged a Minimum Volume Fee. This article explains what the fee is, how it is calculated, and what happens to your Account during your first few months.
What is my Minimum Volume Fee?
The Minimum Volume Fee is a monthly charge that applies when your Payment volume does not meet the threshold agreed in your contract.
- Example threshold: If your monthly Payment volume is below 2,500 GBP, a Minimum Volume Fee of 29.99 GBP might apply for that month.
- Application level: This fee applies to your company as a whole, rather than per Card Machine.
How is my fee calculated?
The method for calculating your Payment volume changes as your Account matures. We measure your volume in full calendar months, starting from your first full month as a Teya member.
First two months
During your first two full calendar months, we calculate your Payment volume on a strict monthly basis.
- Monthly check: If you do not meet your Minimum Volume Threshold in either of these first two months, we might charge the Minimum Volume Fee for that specific month.
From the third month onwards
From your third full calendar month, we calculate your Minimum Volume Threshold using a three-month rolling average.
- Rolling average: We review your average monthly Payment volume across the previous three active calendar months.
- Below threshold: If this average is lower than your Minimum Volume Threshold, we might charge the Minimum Volume Fee.
What happens if I am inactive?
To make the three-month rolling average fair, we look at whether a month is active or inactive based on how many days you process Payments.
- Inactive month: If you have fewer than 7 days of Payments in a calendar month, we treat that month as inactive.
- Single inactive month: One inactive month is not included in your rolling average calculation.
- Two consecutive inactive months: If you have two inactive months in a row, we include both months in the three-month rolling average.
For more information about the Minimum Volume Fee, please refer to your Terms and Conditions.