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Clover Regulatory Compliance Charge: What Is It and Is It Legitimate?

Regulatory compliance charges are one of those vague fees that processors love to add. It sounds official and necessary, but what exactly are you paying for? Let's decode this fee and figure out if you're being overcharged.

Quick Fixes to Try Right Now

1

Request a Detailed Explanation

Call your processor and ask specifically what the 'regulatory compliance charge' covers. Request documentation of the actual regulations requiring this fee. Many processors struggle to justify it.

2

Compare with Industry Standards

Research what other processors charge for similar fees (if anything). Many reputable processors don't charge separate regulatory fees, instead building these costs into their standard rates.

3

Negotiate or Dispute the Fee

Armed with your research, call your processor's retention department. Explain that competitors don't charge this fee and request it be waived or reduced.

4

Get Competing Quotes

If your processor won't budge, get quotes from processors with transparent, all-inclusive pricing. Use these quotes as leverage or as a reason to switch.

Still Having Issues? Compare Your Options

Feature Clover CapClover
Customer Support Long hold times, unresponsive Your assigned rep's direct line
Business Funding Limited or no options Up to $500,000
Approval Time Weeks or denied Same-day decisions
Hidden Fees Frequently reported Transparent pricing
Contract Terms Early termination fees Flexible terms

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Frequently Asked Questions

What is a regulatory compliance charge?
A regulatory compliance charge is a fee some processors add to cover their costs of complying with payment industry regulations, government requirements, and card network rules. However, the specific regulations covered are often vague.
Is the regulatory compliance fee legitimate?
While processors do have compliance costs, many consider this fee to be a 'junk fee' that pads processor profits. Reputable processors typically include compliance costs in their standard pricing rather than adding separate fees.
Can I refuse to pay the regulatory compliance charge?
You typically cannot refuse individual fees while keeping your account, but you can negotiate to have it removed or switch processors. Document when this fee was added and whether you were properly notified.
How much is a typical regulatory compliance fee?
Regulatory compliance fees typically range from $4.95 to $24.95/month. Any fee above $10/month should be questioned, and many argue no separate fee should exist at all.