A Monthly Minimum Fee (MMF) is a baseline amount that was agreed to for using a service, regardless of actual usage. This fee ensures a minimum revenue for the service provider while giving you access to their platform or services.
The Monthly Minimum Fee operates on a simple principle:
- Predetermined Minimum: Your contract sets a specific minimum monthly payment (for example, $200).
- Monthly Calculation: At the end of each billing cycle, we compare your actual usage fees against your MMF.
- Fee Application:
- If your usage fees are less than the MMF, you'll be charged the difference to reach the minimum amount.
- If your usage fees are equal to or greater than the MMF, you simply pay your actual usage amount with no additional charges.
Example 1: Usage below minimum
- Your Monthly Minimum Fee: $200
- Your actual usage for the month: $120
- You'll be charged: $120 (usage) + $80 (MMF difference) = $200 total
Example 2: Usage above minimum
- Your Monthly Minimum Fee: $200
- Your actual usage for the month: $350
- You'll be charged: $350 (actual usage only)
FAQ
Can my Monthly Minimum Fee be adjusted?
Your MMF is established in your contract. For any adjustments, please contact your account manager to discuss your specific situation.
How will I see the MMF on my invoice?
The MMF adjustment is processed on a separate invoice issued at the end of the billing month. This separate invoice will only include the difference needed to meet your minimum commitment if your usage was below the threshold.
Does unused MMF roll over to the next month?
No, the Monthly Minimum Fee is calculated and applied on a month-by-month basis.