Learn all about Merchant Accounts, accept credit card payments online and apply for a free merchant account! |
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Merchant Account IQ - All About Merchant Accounts - Accepting Credit Cards Online - Compare Credit Card Processing Companies |
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As an ex-account manager for a merchant
processing company I saw a lot of "scams" being run by merchant
processing companies.
The "Guaranteed 1% Processing Rates" for instance never included "Mid-Level" or "Business-Level cards. (Mid-Level processing occurs when a number must be manually entered into the credit card machine, not swiped) those rates would then offset your tertiary 1% rates by charging 4% or even 5% for Mid and Business level cards. Oftentimes those basis points would grow
even larger with the additional add-ons of non-standardized industry
practices. In this article we will examine how these rates can skyrocket
and what you need to know in order to protect yourself and your
business. Discount Rate - The % of the sale your credit card company keeps for themselves. |
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| Transaction Fee
- The required amount a business pays on each transaction, this is
usually around .20cents and does not change based on price. Which means
it will remain the same whether 1 dollar or 500 dollars are spent. Address Verification Fee - Processed when an address must be verified. This most often occurs with over the phone calls (Mid-Level Processing). Gateway Fee - A fee often associated as the "right to use" a processors system. This term can often change, I suggest asking if there is a monthly charge for use of the system. Monthly Minimum (name may change) - Oftentimes the merchant processor will have a $25 minimum or higher. This means if you don't accrue at least $25 in processing fees, or whatever their minimum is, you must make up the difference. For smaller businesses this is a real possibility. Statement Fee - The industry standard for a statement fee is $10. Those are just a few of the terms involving Merchant Processing. Be on the lookout for other added fees, and read over each contract carefully. Remember, oftentimes you will sign one form as an agreement and a completely different form for the contract terms, read all the small print and look for additional fees. They may occur as fees accrued when you accept your customers visa or mastercard, they may occur when a customer pulls out their American Express Blue card for business expenses. Either way, there are many hidden fees. Finally, if you have any more questions, or if you would like a FREE ANALYSIS of your current merchant processing monthly statement, I would be happy to look at it for you free. Remember, I don't sell merchant processing products so my free analysis is not a way to upsell you a new product. Good Luck, and keep on looking out for your business. James Jonson |
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Get a FREE Merchant Account with Charge.com the #1 merchant account provider Click Here Now! |
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