If you are setting up credit card processing online, you will need to know what the merchant account rates are to ensure that it will work for your business. There are different fees that come along with having a merchant account and you will need to know these before you open an account.
The Transaction Fees
Many new business owners assume that the merchant account rates only consists of the transaction fee, but this is not true. A transaction fee occurs every time a credit card payment is processed. Typically these are flat fees rather than a percentage. For online accounts, the average transaction fee is around .30, which doesn’t sound like a lot but it adds up.
Settlement Fees
Some merchant account rates also have a settlement or batch fee, which is when the money is sent to your bank. It is a processing fee and this typically happenseveryday. You’ll need to find out if this is a fee and how much it will cost.
Monthly Minimum
If the merchant account rates provider requires a minimum amount of credit card sales on a monthly basis and you’re below it, they will charge a fee. However, this fee is charged instead of your processing fees. This is about $15 per month, but can be higher depending on the merchant account.
Annual and Statement Fees
Some merchant accounts charge to generate and send monthly statements to you. In addition, some have an annual fee as well.
Knowing all the fees before you sign up for the account is crucial. You want the account so you can make money not spend more than you have to. The fees to have a merchant account are relatively low for the most part, but some are higher. A little online comparison shopping can save you a lot money.