Understanding Merchant Provider Fees

Small business understand that they’ll need to pay a fee for processing credit cards online or accepting them through a terminal. The merchant bank has expenses associated with performing the transaction along with a need to make money as a business. But many people don’t understand the nature of the fees associated with working with a payment gateway. This leads to confusion and — in some cases — people feeling like they are being “ripped off” by their merchant bank.

The reality is that the rates and fees that reputable banks like Charge.com Payment Solutions, Inc. charge their customers are very standard. Any processor will be able to explain these ahead of time and you can always find more information in your terms of service. Here’s a quick look at some of the most common credit card processing fees that businesses face:

Discount Rate: The discount rate is the amount of a total transaction that the merchant bank will keep before releasing the rest of the money to you. The amount of the discount rate can vary based on several factors. For example, high risk merchant accounts often have to pay a higher rate than businesses in more stable industries. You might also need to pay a higher discount rate if you accept certain types of “specialty” credit cards such as a “platinum” or “business” card.

Debit Rate: When a customer uses their card as a debit card, the merchant bank charges the business a different rate — usually smaller — than if they used it as a credit card. In some instances, merchant banks will not charge anything for PIN-based debit card transactions. However, make sure you check the terms of service if this is the case; in most instances, they are charging a higher discount rate on credit card transactions to make up the difference.

Transaction Fees: Along with discount rates and debit rates that are based on the total amount of the transaction, merchant banks also charge a transaction fee. This is a set amount that they will bill a business for each transaction they handle for them, regardless of size. The amount is usually $0.25 or less.

Monthly Fees: A merchant bank will also charge a monthly fee to its clients to handle account maintenance. These are things that the bank needs to do in order to ensure that the customer’s account works properly such as customer support costs, preparing monthly statements and network access fees.

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The preceding article was written by Charge.com Payment Solutions, Inc., a leading source for processing credit cards online or on site. Visit their site to learn more about setting up a payment gateway.

 

Volume Commitments for Small Business Credit Card Processing

Before you enter into an eCommerce credit card processing agreement with any credit card processor, it’s important that you understand all of the details. It’s an unfortunate fact that many small businesses wind up stuck in lengthy contracts or are bound to clauses in their Terms and Conditions that end up costing them money. In some cases, this is because they simply didn’t read or understand conditions that were clearly spelled out ahead of time; in other cases, it’s because of hidden fees or terms.

One area where providers of credit card merchant services can sometimes trip up new small business customers is through volume commitments. This is a condition of a contract that requires the business to process a certain amount of money each month through sales handled through a credit card machine or through online credit card processing. If a company doesn’t reach the minimum processing amount, they may be subject to additional fees from the processor or they may even see their monthly rate go up.

If you run a small business or a business that has a wide fluctuation of sales from month to month, a volume commitment can be damaging. While larger businesses can use this volume commitment to ensure better rates or a higher level of service from a credit card processor, it will usually only cause headaches for small businesses and startups.

If you work with Charge.com Payment Solutions, Inc., you can take much of the hassle out of credit card processing. You can enter into a contract-free agreement for your credit card processing, meaning that you are free to walk away at any time.

Article written by Charge.com Payment Solutions, Inc.. Charge.com Payment Solutions, Inc. offers low-cost credit card merchant services to small businesses worldwide.

Online Merchant Accounts for Bad Credit

If you’re a business owner with bad credit, you might have a difficult time getting approved for financing. You might also find it hard to get approved for small business credit card processing. However, you shouldn’t let your poor credit score stop you from accepting debit and credit card payments online.

The ability to accept credit cards online will benefit your business as well as your customers. It’s considered a safe and convenient payment option for consumers who enjoy shopping online. It’s also a great way to boost your sales. This is why every small business owner should consider offering their customers the ability to purchase products and services via plastic.

So how does a business owner with poor credit get started? It’s easy. Even if you have poor credit, you can still process payments through your website. The key to getting approved for a merchant account is to apply for a high risk merchant account. Unlike a conventional merchant account, a high risk merchant account is designed for businesses that are considered high risk or that have a bad credit score. Even if you have filed for bankruptcy, there is still a chance that you will be approved for a merchant account as long as you apply for the right type of account.

High risk merchant accounts are available through a small number of merchant account providers that specialize in dealing with high risk businesses such as online companies and businesses with bad credit.

This blog is approved by Charge.com Payment Solutions, Inc., a merchant account provider that offers online merchant accounts for high risk companies with poor credit.