|
Retail Merchant Account Rates & FeesIf you plan on opening a retail merchant account, make sure that the price you are quoted includes ALL rates and fees. There may be additional costs (such as annual fees) that may be hidden in fine print.Setup Fees Application or Setup Fee – This is the initial fee some merchants are charged for processing the merchant account application or opening the merchant account. Many merchant account providers do not charge application fees. Programming Fee – This is a charge assessed for programming your Point of Sale equipment. This fee can usually be negotiated, especially if you are anticipating a high sales volume.ually be negotiated, especially if you are anticipating a high sales volume. Discover Account Activation Fee – Discover will charge a one-time fee of $50 to allow you to accept Discover cards. Some merchant account providers may also try to charge you site inspection, installation, or training fees. These are just excuses to add more fees. Don’t pay them! Recurring Fees Discount Rate – This is a fixed percentage that is taken from each sale. For swiped transactions, this rate is generally between 1.5% and 1.8%. Non-Qualified Surcharge – This is an additional rate that applies to certain types of credit card transactions. Transaction Fee – This is a charge assessed to each credit card transaction that is submitted by the merchant. This fee is generally between $0.20 and $0.30. Monthly Statement Fee - A monthly fee that should cover the costs of the monthly statements, customer service, underwriting, and all other services. Monthly Minimum Fee – A fee charged if the total monthly discount rate amount does not add up to the monthly minimum. For example, if your monthly minimum is $25, and you only pay $10 is discount fees one month, then you will be charged the additional $15. Monthly Debit Fee – – Some merchant account providers will charge you a fee to accept pin based debit cards. Daily Batch Fee – This is fee paid for processing each daily batch. Batches are usually processed each day that the merchant has transactions. If you do not do this at the end of the day, then your transactions for the day will automatically be charged non-qualified surcharge fees. Chargeback Fee - This is a fee that is charged when the cardholder disputes a charge that is found. Voice Authorization Fee – When a merchant must make a phone call because the bank sends a “Please call” message, then there will be a voice authorization fee added to the cost of this transaction. This fee will be about $1.50. Annual Fee - Some merchant service providers will charge an annual fee. These fees usually aren’t disclosed upfront, so make sure you read the fine print! Contractual Terms & Termination Fee When you open a merchant account, you may be required to sign a one to four year contract. These contracts will generally have a termination fee that ranges from $150 to $600. |
|