You may have seen the terms “NRC” and “MRC” on invoices or contracts for hosting, colocation, and transit services as a customer or hosting provider. What do these acronyms actually mean, though, and how do they compare to one another? You may better control your spending and manage your hosting, colocation, and transit costs by knowing the distinction between NRCs (Non-Recurring Charges) and MRCs (Monthly Recurring Charges).
MRC means “monthly recurring charge”, it is the cost you are charged every month for service. NRC means “non recurring charge”, it is a one time fee, normally charged when a service is first activated.
What is an NRC?
NRCs are one-time charges made common for certain types of products or services. They are often used to pay for one-time costs that are not expected to recur over the lifetime of the product or service, such as setup, installation, or other similar costs. MRCs, in contrast, are monthly charges for continuing services or regularly provided goods. They are recurring payments. The continued use of a hosting account, the leasing of colocation space, the usage of a network connection, or the use of a transit service, for instance, may all incur charges to an MRC.
Setup fees with discounts:
NRCs can sometimes come up as voluntarily paid optional fees that are used to lower the MRC for a certain service or product. These costs, which are sometimes known as “setup fees” or “installation fees,” are particularly typical for services like hosting for dedicated servers and dark fiber. When you are certain you will use the service for a long enough period of time to save money over the long run, it is most beneficial to choose an NRC / setup fee in this situation. Even when the numbers do show a long term cost savings, many customers will choose to reduce or forego NRC / setup fees in order to save money up front, even if doing so results in longer-term expenses to them. Ultimately for this type of optional setup fee, the choice is up to the needs and preferences of the customer.
Knowledge is power
The terms and costs of any hosting, colocation, or transit service should be thoroughly reviewed in order to fully understand the options available for NRCs and MRCs. The ability to pick between several NRC and MRC alternatives to find the best fit for their budget and demands may be offered by some vendors through flexible pricing structures. Finally, even if a vendor doesn’t advertise these options, doesn’t mean they can’t offer it — be sure to ask a salesperson to see if your preferred arrangement is something they can consider.
In conclusion, NRCs and MRCs are possible fees for hosting, colocation, and transit services. While MRCs are recurring payments for ongoing services or products, NRCs are one-time charges for particular services or goods. Making educated decisions about your hosting, colocation, and transit costs can be made easier if you are aware of the distinctions between these fees.
Do you love servers?
We do! Understanding billing charges for hosting, colocation, and internet service can be complex, but IOFLOOD can help simplify the process. Our team of experts can help you understand your billing charges and provide transparent pricing for all of our dedicated server solutions.
To learn more about our dedicated servers and how we can help you understand your billing charges, contact us at sales[at]ioflood.com or visit our website at https://ioflood.com. Our team is always ready to answer your questions and help you find the best server for your needs.