Posts Tagged ‘rates’

If you’re just starting a new business you probably already know that you’ll need to get a merchant account. But do you know what to look for when you are comparing different companies? In this article we’ll take a look at a few different merchant account fees you’ll see so you can make a fair comparison.

Setup Fees: These fees can range all over the place. I’ve seen some companies that will waive this fee under certain circumstances, and others will charge several hundred dollars. So watch out for this one!

Transaction Fees: Every time you process a transaction there will be a fee attached to it. These fees are usually two fees in one. The first is a flat rate, such as $0.25. The second one will be a percentage of the transaction such as 2.9%. This is another great way to compare companies. Also be aware that as you process more and more transactions a month you’ll probably be able to renegotiate this rate.

Statement and Other Monthly Fees: There are several monthly merchant account fees that you’ll run into. Some of the standard ones are statement and gateway fees. These fees range all over the place. Some companies have decided to make this a yearly fee rather than a monthly fee.

Processing Limits: Another problem you run into from time to time is a low processing limit. If you have a limit on your account and need to process more in a given month you’ll usually have to renegotiate with the merchant company. Look for companies that either just grow with you or have a realistic limit that you can work with.

So there you have it. These are some of the main fees you’ll see. There are others as well, so take everything into consideration when doing your comparisons. If you pay attention to these different merchant account fees as you’re comparing companies you’ll be able to get the best deal.

If you’re just getting started in a new home business, online, or small business you’re going to need a merchant account in order to accept credit cards. But do you know what to look for when it comes to fees? Let’s take a look at some of the different fees you’ll see so you know what to watch for.

Setup Fees: This is the first fee you’ll run into when dealing with a merchant account company. I’ve seen these fees range anywhere from $50-$700, so you really need to pay attention to how much a company is going to charge you.

Per Transaction Fees: Every merchant account charges some sort of per transaction fee. They usually break these fees up into two different ones. One is a flat rate such as $0.30, and the other will be a percentage such as 2.5%. As you process more and more with a merchant company the rate will usually go down. Or at least you can renegotiate it.

Monthly Fees: This is another common thing that you’ll see, and like the other fees this one tends to range all over the place. I’ve seen some companies charge as much as $40, and I’ve seen some charge only $10 a month. Some companies don’t charge monthly but instead charge yearly, so that’s another thing to watch for.

Processing Limits: Another problem you run into from time to time is a low processing limit. If you have a limit on your account and need to process more in a given month you’ll usually have to renegotiate with the merchant company. Look for companies that either just grow with you or have a realistic limit that you can work with.

There are usually other fees that you’ll run into from time to time, but if you use these fees as a baseline to do your comparisons you should be able to find a really good deal on your next merchant account.

If you’re just starting a new business you probably already know that you’ll need to get a merchant account. But do you know what to look for when you are comparing different companies? In this article we’ll take a look at a few different merchant account fees you’ll see so you can make a fair comparison.

Setup Fees: This is the first fee you’ll run into when dealing with a merchant account company. I’ve seen these fees range anywhere from $50-$700, so you really need to pay attention to how much a company is going to charge you.

Transaction Fees: This one is a given - all merchant account companies will charge a little bit for every transaction you process through your account. This is usually broken up into two parts. The first part is a flat rate, usually anywhere from $0.20 to $0.40. The second is a percentage, which can range anywhere from 1.55% to 5.0%. This rate is usually negotiable depending on how much you process each month.

Statement and Other Monthly Fees: There are several monthly merchant account fees that you’ll run into. Some of the standard ones are statement and gateway fees. These fees range all over the place. Some companies have decided to make this a yearly fee rather than a monthly fee.

Processing Limits: Another problem you run into from time to time is a low processing limit. If you have a limit on your account and need to process more in a given month you’ll usually have to renegotiate with the merchant company. Look for companies that either just grow with you or have a realistic limit that you can work with.

There are usually other fees that you’ll run into from time to time, but if you use these fees as a baseline to do your comparisons you should be able to find a really good deal on your next merchant account.