A setup fee is a one-time charge for starting a service. In payments, it is most often charged by an acquirer, independent sales organisation or payment gateway when a business opens a merchant account, and is meant to cover underwriting, account configuration, terminal programming and integration support. Banking-as-a-service providers, card programme managers and treasury platforms may also charge setup or implementation fees for building a new programme.
Setup fees vary widely. Many providers serving small merchants have dropped them to compete, recovering costs instead through transaction pricing, while providers serving high-risk or complex businesses often keep them because onboarding takes more work. Merchants comparing offers should consider setup fees together with recurring charges such as a gateway monthly fee, minimum fees and early termination charges, since a provider that waives the setup fee may recover it elsewhere. Setup fees are distinct from the establishment fee charged on loans.