1st National Processing mystery fees being charged - PCI Compliance Fee Cakabasas, California

I was notified of a mandatory PCI Compliance Fee on my account of $129.00.  I was informed of this fee in a letter dated October 1, 2009, but not postmarked until 10/30/09.  When I called the company to dispute this charge they said I had no choice I had to pay and if I cancelled my account avoid the fee I would be charged a $250 cancellation fee and I would still have to pay the $129.  It is beyond my comprehension how you can make up fees and charge them informing customers that they have no choice, but to pay them.  Please note that the current fees for my account are $7 per month.    The annual fee they are imposing will more than double the cost of the contract.  So much for the no hidden fees they advertise.