Merchant Account Pricing

compare merchant account - Getting a merchant account setup is not difficult, but shouldn't be done without understanding what type of pricing you should expect as a merchant. Setting up the account from the start with competitive pricing will save you a lot of money later on down the road and prevent you from feeling like you need to switch. Pricing can be divided into four main areas: the discount rate, per transaction fees, monthly fees, and setup fees.

compare merchant account - The discount rate is a percentage of the gross amount of volume that a merchant processes. If the discount rate is 2%, this means that a $100 transaction would result in a net deposit into the merchant's business checking account of $98. For retail accounts, the discount rate is normally 1.5 to 1.8% for a "qualified" discount rate. For internet or "card not present" accounts, this qualified discount rate is usually 2.2 to 2.5%.

The per transaction fee is a fee charged for each transaction not considering the value of the transaction. It is a flat fee, usually between $.15 and $.30 depending on whether it is retail or internet-based.

Monthly fees can be limited to around $10 to $15 per month for a statement, or account maintenance, or a customer service fee. Merchant account providers call this by different names, but the end result is usually a flat monthly fee of about $10.

Setup fees for the merchant account are normally waived altogether. It's possible that there are some fees associated with equipment or an internet gateway of some sort (like an Authorize.net account), but for the merchant account itself, these should be waived unless the merchant provider is giving you a serious discount on the ongoing rates you'll be charged.

Work with an effective merchant account salesperson who can give you a few different options including an "interchange plus" pricing scenario and make sure that you've explained what your business is so you can get the best possible pricing for your merchant account.