Understanding FDMS Charge on Bank Statement!

To understand the FDMS charge first know what is FDMS. First Data Merchant Service is a company that provides payment processing services to businesses. Their services include the provision of tools configuration, and structure which is being used to accept payments from customers.

The reason for the appearance of FDMS payment on bank statement is that when you purchase through a credit or debit card or any other digital channels at a business that uses the FDMS services, the FDMS charge appears on the bank statement.

Have you ever charged or experienced this charge on a credit card statement? Whatever is your answer stay with me to explore more about this charge in this guide!

First Data Merchant Service (FDMS) is a leading payment processing company that provides services globally. Their services best fit all sizes of businesses with over 6 million merchants worldwide and processing over 45 billion transactions annually.

As a payment processing company, FDMS is a trusted partner for a suite of solutions to streamline the operations of payment. Their payment solutions include credit and debit card processing, gift card processing, e-check acceptance, and mobile payments.

Below are the common reasons for charges of FDMS:

Online Purchases

The first common reason is online purchase such as many online retailers like Amazon, eBay, and Walmart uses First Data Merchant Services (FDMS) to process payments. When you purchase from these popular websites the charge appears on your bank statement.

Many popular online retailers, such as Amazon, eBay, and Walmart, use First Data Merchant Services (FDMS) to process payments. When you purchase one of these websites, you may see this charge on your bank statement.

Subscriptions

If you subscribed to Netflix, Spotify, or Adobe by using the FDMS then you will likely see this charge on a bank statement each month. If you subscribed regularly.

Recurring Payments

Regular payments such as Gyms, insurance companies, and Utility companies also use the FDMS payment solutions. If you have a set up of recurring payments with that business that uses FDMS then you will also see this charge on bank statements on each billing cycle.

Chargebacks (Initiate Dispute)

A chargeback is a dispute initiated by the cardholder against a merchant to reverse a transaction in case the cardholder believes that the transaction is unauthorized. If the merchant uses the FDMS payment processing then it may appear on your bank statement.

The appearance of this charge may be varied on the bank statement but on my bank statement it includes the following information:

The amount of the charge, date of the transaction, and merchant information but merchant information is shown in different ways in different scenarios such as

“FDMS charge” and “FDMS transaction”. My other bank credit card bank statement shows this charge as “FDMS Merchant Services” and “First Data Merchant Services. But in some cases, the bank statement shows the name of the business such as “FDMS”.

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Due to the following factors, FDMS bank charges appeared on my bank statement:

Transaction Fee

The most frequent charge is the Transaction fee charge. Whenever I use a Fiserv-powered merchant to pay, a fee appears on my statement as FDMS. It covers the cost of processing and securing transactions.

Statement Fee Surprise

Some merchants charge Fiserv a monthly fee for detailed transaction reports. Shop at these businesses and a portion of that fee will appear as an FDMS fee on my account statement.

Disputed Chargeback

Won a dispute against a purchase? The merchant will pay you the fee.

Missing paperwork puzzle

In rare cases, missing documentation could lead to FDMS charges. It’s fine to leave library books behind! This is not common.

Unhappy Client Fees

When you’re unhappy with a particular purchase and act (e.g., a lawsuit or complaint), the business may face this charge. These will appear on your statement if your Name is involved.

Fraudulent Transaction

If your card is fraudulently used, your bank reverses the charges to credit your account. Businesses may have to pay an FDMS security fee, which the statement reflects.

Payments on Merchant Cash Advanced

Did you obtain a merchant cash advance (MCA) through a Fiserv business? You may see FDMS charges as repayments for the MCA on your statement.

Merchant Rule Breakers

Businesses violating payment processor rules (like Fiserv’s) might incur FDMS fees. It’s like getting a speeding ticket for breaking the rules.

Subscription Service Issues

Charges from FDMS could be a result of automatic payments for Fiserv subscriptions. Double-check to make sure your subscriptions remain valid.

International Transaction Twist

If you make purchases abroad through Fiserv-powered businesses, additional processing fees may be reflected on your statement as FDMS. Check your statement details for more information.

I have tried my level best to explain the process flow of FDMS bank charges, so I explained it with example for your convenience:  

Processing Fees to Small Business Owners

Imagine, as a business owner, you run a charming cafe. Every day, people swipe their cards. This involves fees. FDMS helps to solve this problem.

The Scenario: When you look at your business’s bank statement, there is a charge labeled “FDMS Fees- $25.50.”

(Explanation): This charge represents processing fees for the transactions of credit cards made at your business during that period. It can be a mixture of per-transaction charges, monthly statement charges, or both.

Check your Fiserv merchant account (if applicable) for the detailed breakdown of transactions charged.

Further Explore: A small business owner with a large transaction volume may consider negotiating the processing fee with Fiserv.

Below are the tips to manage effectively these charges:

• Regularly monitor your bank statement to identify the charges and note them in a separate Note Pad like merchant’s name and date etc.
• To avoid processing fees, use a debit card for payments at Fiserv-powered companies.
• Try to get in touch with the merchant before filing a complaint for dispute.
• Regularly examine your subscriptions related to Fiserv.
• If you are doing foreign transactions by card at Fiserv-Powered companies you may charge additional charges, so to avoid it find another way of payment.
• Keep updating yourself about Fiserv because it regularly updates the pricing policies.

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Red flags in FDMS pymt are unexpected sudden large amount charges hit to your bank account statement, overcharges fees, missing details of transactions, double charges hit, and unauthorized card use.

By being alert and aware of the red flags, you can proactively manage your charges and protect your financial health.

In case of unauthorized charges in your bank account statement follow below the dispute process:

Gather information like merchant name, transaction date, and amount from your bank account statement.

After that, contact the merchant and elaborate them the details of your transaction.

Call your bank’s dispute department if you are not satisfied with the remarks of your merchant or if it is confirmed that the charge was unauthorized.

Make a formal dispute claim with your bank, most banks have 60 days to settle the claim.

Your bank will investigate and contact merchants for responses. This process can last several weeks. The bank will reverse it and credit your accounts if the charges are unauthorized.

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FAQs – Frequently Asked Questions

This charge may be seen at first sight as complex, but when decoded, the meaning is now understood clearly. From its definition to its causes, it empowers your confidence in the financial world.

Remember, knowledge is the key to financial clarity. If you have further questions or concerns about this charge, please contact your bank.

By taking the time to understand this charge, you can gain a better understanding of your financial transactions and protect yourself from potential fraud or unauthorized charges.