Merchant Account Fees To Business Owners

As a business owner, when you set up a merchant account to enable your customers the ability to pay for your products or services using credit cards (or debit cards with a Visa or Mastercard Logo), you will have some fees associated with the credit card transactions.

The specific fee amounts that you pay will depend on the merchant account provider you select to provide your credit card processing service; however, there is a list of typical fees that the majority of providers charge business owners in exchange for the ability to accept credit as payment.

Discount Rates
Visa and MasterCard have what is called “interchange” rates. They range in price- so in order to make it easier, the merchant providers created three categories.

Qualified Discount Rate – a percentage is paid from each dollar charged.

Mid-Qualified Rate – does not apply to merchants that manually enter transactions.

Non-Qualified Rate – added to the qualified rate n certain transactions. Also get billed this higher rate if you don’t use address verification service (AVS) when you manually enter transactions.

Other fees many merchant account providers charge their business customers include, but are not limited to the following:
Reward Cards- most merchant providers charge higher rates if the consumer pays using a reward card.

Transaction Fees- a specific, flat rate that is paid on every sale processed through the credit card processor. (Sometimes the transaction fee is called the interchange fee, authorization fee, or per inquiry fee).

Address Verification Service (AVS)- merchant account providers charge a small fee for the validation service to ensure that the billing address provided in the online checkout process matches the issuing bank’s records. Not using this service will result in hefty charges on the processing of the card for that sale.

Batch Fees- most merchant account providers require that customers close out their transactions a minimum of one time each day. The batch fee pays for expenses for the gateway or software that accesses the credit card processing network. If you don’t have transactions to process, there is no batch fee to pay.

Monthly Statement or Customer Service Fee – most merchant account providers charge a monthly fee in order to cover their monthly costs of operation (paying their customer service team for example).

Monthly Minimum Fee- some merchant account providers require you process a minimum amounts of sales per month, or you pay a monthly minimum. Monthly minimums tend to range between $15 and $40 per month.

Gateway Fees- for some merchant accounts, there are fees for internet and mail order merchants to use an internet gateway service such as Authorize.net, although some merchant providers will cover this fee on their customer’s behalf as part of the package deal. If you are solely an internet business, you’ll want to look for an internet merchant account that includes the gateway service as part of the package.

Annual Fees- often charged by merchant account providers- particularly the merchant account providers that offer free terminal equipment. There are numerous merchant account providers that do not charge an annual fee, so you may want to shop around if the first few you look at require an annual fee. Sometimes it would be cheaper to purchase the equipment than to pay an ongoing annual fee.

Cancellation/Termination Fees- Most merchant accounts require a contract agreement of one or two years and if you cancel early, you are likely to be charged a termination fee.

Chargeback/Retrieval Fees- When a customer requests a refund (or the customer’s credit card issuer requests a refund), merchant account providers typically charge a “chargeback” fee.

Your Business Merchant Account

Do you have a business merchant account? If not, isn’t it time you got one? The companies you compete against for customer business may already have this special account that allows them to process customers’ credit payments. If you are not yet doing so, why not apply for a merchant account to help your business grow?

A business merchant account is the best way to expand your company’s operations and conduct e-commerce without risking too much of an investment. Simply apply for a merchant account the way an individual would apply for a personal credit card. As with individual applicants, a company needs to show a positive credit history and the ability to make payments on a merchant account at present. In addition, it cannot be involved in shady dealings with which the underwriters might not agree. Many lenders will let you apply online, although some charge a fee for this. Often you will get a decision on your application within a day or two. If approved, you can begin making arrangements to accept credit payments in a variety of ways. Pay attention to fees and payment terms. For example, you may be asked to pay 15 to 25 cents per transaction. Or you could have the choice of paying a low overall percentage rate. Some lenders impose minimums, though, meaning you will have to pay a “bottom line” fee no matter how many transactions you make.

Your business merchant account will let you purchase or lease a credit card processor that can be plugged into your store. Or you can take a wireless version with you when collecting payments from other locations. Many business owners prefer to use a telephone ordering and payment system. This can be automated, reducing the need for staffing except for questions or glitches. Customers can speak or touch-dial their credit card numbers into the phone to process orders at their convenience. You will need to make sure your system is fully operational at all times and that it is customer-friendly to keep from annoying or even driving away current or new clients.

When you utilize a business merchant account, you can receive a printed monthly statement, discounts for other services, and occasional other benefits as well. Being able to accept credit card payments suggests that customers will look at you a little differently, knowing that you have earned an underwriter’s trust for this important role. Posting signs for accepting credit card payments places your company in the ranks of the elite, since many smaller or newer companies do not yet enjoy this privilege. When you begin accepting credit card processing, you can move away from cash-only payments or checks that can bounce. The time saved from managing cash flow can be channeled into more meaningful tasks.

Getting a merchant account means that you’re ready to upgrade your business, and that you are taking extra steps to accommodate your customers. Be proud to receive a merchant account, knowing that not everyone is approved. Handle it responsibly, since you have much to be thankful for with your new business merchant account.

Find The Right Merchant Account Provider For Your Business!

Finding the right merchant account provider for your retail business can be a tricky process. There are thousands of merchant account providers to choose from with all sorts of rates and fees associated with them. So how can you possibly save your time and money making the right decisions for your business?

Well the first typical move for a business owner would be to jump onto a popular search engine, type in "merchant account" and start searching through each merchant account providers website right? Well the thing is that when you type in those keywords you'll be matched with over 75 million merchant account websites!!! Now tell me, who has the time to find a legitimate, merchant account website that won’t charge them thousands of dollars a year in hidden fees claiming they have the lowest rates on the internet? That's exactly the problem with finding a legitimate merchant account processor over the internet.

You need a company that you can trust to compare multiple merchant account quotes with while saving your time and money. Stop stressing yourself out from searching through the millions of merchant account websites that are out there to charge you tons of hidden fees. The solution is here and it's PayOne Solutions, Inc. They take your current processing statement, and make the banks compete for your business guaranteeing you get the lowest processing rates and on top of that they throw in up to $1000.00 of Free POS Equipment, which means you never have to pay for your equipment ever again. The choice is simple; you want the lowest rate with absolutely no hidden fees with no equipment costs for your retail business?

Then visit http://www.payonesolutions.com/ or call 1-877-876-4456 for your free merchant account quote and let the banks compete for your business, not the other way around!

Business Merchant Account - Get One

Business merchant accounts are critical to have if you want to accept credit cards. Business merchant accounts are not limited to those computer consultants reselling products either. They are a good idea for any sale, especially when you are selling to new clients.

If you have a business merchant account you will not have to chase down outstanding debt. The cost is not that high and you don't have to buy traditional credit card processing equipment. Now they have what is called a lab terminal, which allows you to use your web browser to manage the transactions. The systems are completely secure and most business merchant account providers team up with larger companies that offer great advantages.

Costco's Business Merchant Account
One of the biggest secrets we learned about business merchant accounts is that Costco provides a fantastic deal on credit card processing through Nova Systems. It's such a great deal it can actually pay for your entire Costco membership. Here are some particulars:
All of the monthly statement and gateway fees are waived - savings of $25 - $50 per month
Very competitive discount rates on Visa and MasterCard.
You can add on processing for American Express and Discover - you will find that even though American Express transaction fees are higher, it is a very popular card with small businesses.
The charges billed are transferred quickly and directly into your business bank account - this is a lot faster than doing your billing or invoicing once a week or so.

Paypal

Paypal is a popular alternative to traditional business merchant accounts. Paypal is very easy to set up and the set up is free. There are restrictions though on what you can do and how you can withdraw your money. The largest drawback is the negative connotation of being an ebay related service where people sell garage sale stuff as a hobby.

The Bottom Line on Business Merchant Accounts

Business merchant accounts will help you get paid faster. There are fees involved but the customer convenience and no hassle approach to receiving your money make it worthwhile. There are different business merchant accounts available so do your homework and choose the one that makes the best sense for you.

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