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.