In this day and age of electronic commerce, the decision to open a credit card merchant account is relatively undisputed. The actual process of opening an account should begin with the retailer identifying certain key parameters about the retailer trade the merchant requires the merchant account for. The selection of an appropriate vendor for the merchant account should be the first step in the cycle, which is usually followed by an application on a prescribed form. If and when approved, certain information and documentation such as financial statements will need to be furnished to the merchant account provider. One approved, the provider will supply the equipment or in case it is an online merchant account, the retailer’s website will need to embed the merchant account software in the e-commerce website and integrate the shopping card software supplied by the merchant account provider.

Selecting a merchant account provider should take into account the volume and value of proposed transactions, nature of business, history and track record and identification of specific needs, if any apply, of the retailer. The volume of transactions and nature of business proposed to be conducted via the merchant account will have a significant bearing on the available options to choose from. For instance, if a retailer expects a high volume of transactions, a merchant account for that specific purpose will need to be obtained, which frequently fall in the high risk category. Such high risk businesses may not be able to obtain a merchant account onshore, and may need to opt for an offshore merchant account. The history and track record with a merchant account may come into question in case of a domestic account provider. In case a retailer is unable to meet certain basic requirements, for instance, if a retailer has been in business (online) for less than 2 years, the merchant account provider may ask for a cash bond (as indemnity) along with a business plan, which will further need to be approved.

In addition to choosing between an offshore or onshore provider (which in some cases may not present a choice), an e-tailer will be well advised to do some extensive number crunching when choosing a merchant account provider. Today, there is available, an extensive list of provider to choose from, with varying fees, minimum requirements and transaction fees. While intense competition has caused many providers to lower their fee structures, a merchant must beware of hidden fees and charges that may not be presented initially by providers offering ‘ZERO SETUP FEE!’ and similar catch phrases to capture attention.

The actual application process begins with filling in an online form (in case of internet merchant account) or a physical form, available through your local bank, in the case of a domestic merchant account. Many offshore account providers can be located by simply searching the internet. The application form is then screened by the merchant account provider, in order to assess feasibility, primarily from a risk point of view. As mentioned before, a high risk vendor will probably be out of favor for a domestic provider without the furnishing of a substantial indemnity bond. The provider will then approach the merchant for further documentation. Such documentation will mostly include:

? Registration certificate, incorporation certificate, memorandum and articles of association (in case the retailer is incorporated), partnership deed (in case of partnership) and other organizational material.
? Details about the directors or partners including name, place of domicile (with proof), contact information, etc.
? Identification proof of the directors, managing partners.
? Business plan and financial documentation.
? Full history with a previous merchant account along with detailed information about chargebacks.

In addition to the submitted information, the merchant account provider will typically conduct its own background checks including a credit history and rating verification, as well as a detailed analysis of the retailer’s proposed business model and revenue potential. Assuming that all is satisfactory, the provider will obtain an approval from an acquirer bank that it has a relationship with (many big banks have their own acquirer bank units). Once approved, the retailer will have to purchase a credit card terminal and in many cases, a dedicated telephone line for processing needs. In case an internet merchant account is applied for, the software is the key to operations. While many merchant account providers have their own shopping cart software, they also provide a compatibility list of 3rd party software. Such 3rd party solutions are often favored by retailers due to the usability, features and ease of management.

A final point to be noted in case of an offshore merchant account- while it is possible to go directly offshore, set up and incorporate a company in a foreign land, and do the necessary paperwork yourself, it may be more convenient and practical to approach a third party merchant account provider such as Stradafee, which specialize in providing merchant accounts and have the necessary infrastructure in place to make the whole process even easier.

In this day and age of electronic commerce, the decision to open a credit card merchant account is relatively undisputed. The actual process of opening an account should begin with the retailer identifying certain key parameters about the retailer trade the merchant requires the merchant account for. The selection of an appropriate vendor for the merchant account should be the first step in the cycle, which is usually followed by an application on a prescribed form. If and when approved, certain information and documentation such as financial statements will need to be furnished to the merchant account provider. One approved, the provider will supply the equipment or in case it is an online merchant account, the retailer’s website will need to embed the merchant account software in the e-commerce website and integrate the shopping card software supplied by the merchant account provider.

Selecting a merchant account provider should take into account the volume and value of proposed transactions, nature of business, history and track record and identification of specific needs, if any apply, of the retailer. The volume of transactions and nature of business proposed to be conducted via the merchant account will have a significant bearing on the available options to choose from. For instance, if a retailer expects a high volume of transactions, a merchant account for that specific purpose will need to be obtained, which frequently fall in the high risk category. Such high risk businesses may not be able to obtain a merchant account onshore, and may need to opt for an offshore merchant account. The history and track record with a merchant account may come into question in case of a domestic account provider. In case a retailer is unable to meet certain basic requirements, for instance, if a retailer has been in business (online) for less than 2 years, the merchant account provider may ask for a cash bond (as indemnity) along with a business plan, which will further need to be approved.

In addition to choosing between an offshore or onshore provider (which in some cases may not present a choice), an e-tailer will be well advised to do some extensive number crunching when choosing a merchant account provider. Today, there is available, an extensive list of provider to choose from, with varying fees, minimum requirements and transaction fees. While intense competition has caused many providers to lower their fee structures, a merchant must beware of hidden fees and charges that may not be presented initially by providers offering ‘ZERO SETUP FEE!’ and similar catch phrases to capture attention.

The actual application process begins with filling in an online form (in case of internet merc

hant account) or a physical form, available through your local bank, in the case of a domestic merchant account. Many offshore account providers can be located by simply searching the internet. The application form is then screened by the merchant account provider, in order to assess feasibility, primarily from a risk point of view. As mentioned before, a high risk vendor will probably be out of favor for a domestic provider without the furnishing of a substantial indemnity bond. The provider will then approach the merchant for further documentation. Such documentation will mostly include:

? Registration certificate, incorporation certificate, memorandum and articles of association (in case the retailer is incorporated), partnership deed (in case of partnership) and other organizational material.
? Details about the directors or partners including name, place of domicile (with proof), contact information, etc.
? Identification proof of the directors, managing partners.
? Business plan and financial documentation.
? Full history with a previous merchant account along with detailed information about chargebacks.

In addition to the submitted information, the merchant account provider will typically conduct its own background checks including a credit history and rating verification, as well as a detailed analysis of the retailer’s proposed business model and revenue potential. Assuming that all is satisfactory, the provider will obtain an approval from an acquirer bank that it has a relationship with (many big banks have their own acquirer bank units). Once approved, the retailer will have to purchase a credit card terminal and in many cases, a dedicated telephone line for processing needs. In case an internet merchant account is applied for, the software is the key to operations. While many merchant account providers have their own shopping cart software, they also provide a compatibility list of 3rd party software. Such 3rd party solutions are often favored by retailers due to the usability, features and ease of management.

A final point to be noted in case of an offshore merchant account- while it is possible to go directly offshore, set up and incorporate a company in a foreign land, and do the necessary paperwork yourself, it may be more convenient and practical to approach a third party merchant account provider such as Stradafee, which specialize in providing merchant accounts and have the necessary infrastructure in place to make the whole process even easier.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

On Jan 17th, 2008 a sting operation in Vancouver, BC thwarted a ring of credit card counterfeiters living the life of luxury entirely funded with other people’s credit. The goods hauled away by police filled several 3 ton moving trucks and values were estimated between $70 000 and $100 000 dollars. The perpetrators had used stolen and manufactured identities to finance everything from high end cameras, televisions, and jewelery to automobiles and a multi-million dollar home. Accounts seized were valued at over $10 million dollars.

Credit card fraud is a multi-billion dollar crime in North America. It is becoming an increasingly popular form of identity theft because of advances in printing technologies and it can be done anonymously with little or no risk of prosecution even if it is discovered. Often card numbers are used to make purchases over the phone or internet, but sometimes advanced schemers may create an actual copy of your credit card complete with magnetic stripe, signature, and security features.

Scam artists have dozens of ways of gathering your information. It may be as simple as convincing an employee at a restaurant, or gas station to copy down credit card numbers throughout the day, or as advanced as planting a bug on point of sale equipment, or even unplugging and replacing a card reader right off the checkout table in a retail outlet. Skimming is the most common and fastest way schemers collect credit card data. The individual carries a small box the size of a pager or cell phone. In the past you had to make a skimmer yourself, however now they can be purchased various places online. By swiping your card the device pulls all data required for counterfeiting right off the card, which can be later downloaded to a computer. Often the data is sent overseas to factories that produce high quality fraudulent cards by the thousands. Cards are then sent out to crime rings throughout the world.

Some of the standard security features found on most types of cards include embossing, micro printing, and printing only visible under black light or ultraviolet light. As technology improves, so does the need for increased security features. Some cards now contain a microchip inside of them which is almost impossible to replicate. Countries that have implemented this system have seen a reduction of this type of credit card fraud reduced by as much as 80%. Some countries also require a PIN number be entered at the time of credit card processing as well. It is the responsibility of store managers to implement procedures to protect customer’s information.

Credit card providers, such as Visa and MasterCard have security procedures and protocols businesses must abide by in order to safeguard both the merchant account and the individual. If you do notice someone has skimmed your card during a transaction call the provider and put a hold on the account. Make a mental note of the individual’s physical description, such as height, weight, hair or eye color, skin tone, and what clothing they are wearing. Immediately report the suspicious individual to law enforcement.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Having trouble managing the plethora of financial accounts you’ve acquired over the years? Tired of sorting through check books and online accounts to figure out which bills you’ve paid and which ones are about to be late? These days it is not uncommon for individuals to be faced with 20 to 30, or even more separate accounts to keep track of. Even with online access to all your bank accounts, credit cards, investment accounts, cell phone, cable, utility bills, mortgage, and auto loans it becomes a task can eat up hours of your time. With everything spread out it can be maddening to wrap your brain around your financial position. Unless you are Warren Buffet, this is where online aggregator accounts can save you the aggravation.

Account aggregation is an accounting method of showing many different types of accounts in one place. Logging into one system can give you a bird’s eye view of your financial situation. These systems utilize “screen scraping” to compile data from each of your accounts and will display them on one page for you to review.

Various types of account aggregation solutions are available. With client based systems you download an application that runs from your computer. This type is more secure because all the financial data is stored on your computer. Server based systems store the data on web servers. While less secure you can access the data from anywhere in the world. Some companies offer a hybrid solution. Mobile systems download the data to a portable USB drive you can plug into a computer anywhere you go. Just don’t lose it!

Some people are concerned about possible security risks of these systems, however it may not be as great as one might suspect. Most financial institutions have rigid procedures in place for transferring money out of an account. In the rare circumstance someone is successful in initiating this type of transaction; in most cases it will not take place instantaneously. With regular use of your account aggregator you will most likely notice it before it is processed and be able to cancel it. The reality is that there is more risk handing your credit card to a dishonest store employee than someone accessing your aggregated accounts. The greater risk is to your privacy rather than financial damage.

While account aggregators still need to be setup and managed as well it is far less difficult than dealing with each account on its own. For small businesses that rely heavily on credit card processing there are professional services through internet merchant account providers that can custom tailor a plan that best meets your specific needs.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Selecting point of sale, or POS, equipment is a critical decision for any small business owner. This is the gateway of financial interaction between your business and its customers. POS equipment is the hardware and software that handles customer transactions and communicates them with merchant account providers if needed. Without them it is impossible to process debit and credit transactions. In today’s marketplace where fewer people than ever carry cash, it is an essential tool for any growing business. These systems include barcode scanners, pin pad entry points, signature stylus, credit card readers or swipers, keyboards, computers, printers, touch screen displays, fingerprint ID’s, and cash registers. A software component that manages user interface and hardware integration is another major factor in the equation.

Choosing specific point of sale components is not as simple as it sounds. A thorough evaluation of you business structure is essential to developing a custom tailored POS system that can carry your business forward. A wireless system is great for mobile vendors or restaurants, while emphasis on customer display may make smoother transactions in a retail outlet. Like the automobile industry, most POS equipment is sold through resellers rather than then manufacturers. Expect to pay between $2000 and $8000 for a high quality custom system fully with a service agreement. While used systems may be less expensive, you may have to install and service the system yourself. Software costs could easily overrun any savings benefits of a used system. Price should not be a major concern in your decision making process. A substandard setup means decreased efficiency, which could cost your business thousands per day in lost revenue. A malfunction at peak hours could run cashier lines out the door, some customers never to return.

POS equipment is divided into two major categories: Hospitality and Retail. Retail systems are less complex as most transactions are done instantaneously. These systems may integrate peripherals such as weigh scales and pole displays to keep the customer informed as items are scanned. Other features could include security features, such as fingerprint ID’s for cashiers. Smooth interface and speedy communication with merchant services is the goal of these systems. Management and organization is the emphasis in the Hospitality sector. In a restaurant setting these systems need to be able to relay orders to a kitchen or bar, manage open accounts as new items are ordered, and track server table responsibilities.

Spend some time analyzing service agreements. Will you receive regular software updates at no additional charges? Will you have to pay for hardware upgrades as your business grows? What is the reputation of the proposing vendor? You need to know if they are going to take care of you when you need it the most.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

We’re going to get back to the definition later, but for now, let’s concentrate on how credit card processing can help you, the merchant. Most importantly, the ability to process credit cards is hopefully something you’re doing now, but maybe you’re unsure if you’re getting the best deal or have had issues with your current processor, bank or merchant service provider. Some of you don’t take credit cards at all; for whatever reasons they’re not good enough and you’re losing business every day that you do not. And finally, some of you had one, lost it or gave it up and realize that it is again necessary, but want to do it properly and through the proper channels. All of these circumstances my readers may be in can be answered easily; you should be dealing with a merchant service provider. The simple answer is that merchant service providers can tailor programs and services specifically to your credit card processing needs.

Whether you take cards in person and swipe them through a terminal or you receive card information via the internet or telephone, you’re looking at a minimum three day process to receive your money. At the end of the first day you’re going to close your batch of sales and submit them (this is done automatically). On the second day, probably before you wake up, the file you sent settles with the bank. By the end of day two, that settlement file is delivered to the bank. At the beginning if day three, your account is funded. This is a basic funding flow, if you process checks online as well that is a separate file and can take longer. As every business and industry has its own set of needs; merchant service providers are a great way of selecting extra services that can enhance your userability and ease of daily fund processing and tracking. Some of these services include ACH check processing, help obtaining a credit card terminal, online reporting tools, virtual terminal for card-not-present transactions, gateway for your internet business, fraud scrubbing for your internet transactions, third-party verification services, and multi-currency processing.

3 Different Credit Card Pricing Methods

There are three pricing methods that you should be aware of, so you know which one may be the best fit for you.

The first is Pass Through, which gives the merchant a choice of per item, per auth, or per basis points. It also has an interchange rate plus per item, dues as well as assessment all passed through to the merchant. There is a monthly fee for this method.

The second is the Tiered method which is for both per item and standard bumps. A 2-tier (for both credit cards and check cards), it has two rates, Qual and Non-Qual; and 3-Tier (for both credit cards and check cards), has three rates, Qual, Mid-Qual, and Non-Qual.

Lastly Bill back, which gives the merchant a choice of a blended per item fee. Merchants that choose this method get a Targeted Discount Rate (2 target rates, one for credit, one for check card) and downgraded transactions are charged by bill back.

In closing, this article doesn’t even come close to actually defining credit card processing, it would be like defining business, because it changes as fast as its customers do. You, the merchant have many choices when it comes to who and how your credit card customers’ money reaches your bank account. Spend the time to contact a merchant service provider to see what services are right for you.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Even though a merchant account is considered one of the most valuable processing assets a business owner can have, many businesses spend a small amount of time actually dissecting and learning about merchant accounts. Through hidden costs and overcharging, merchant account providers can easily manipulate small business owners into processing situations that are much worse than they need to be. Merchant providers like these depend on the fact that business owners don’t want to take the time to learn about merchant accounts themselves and would rather just have it set up and be done with it. The thing is, merchant accounts not really very complicated, and within even a few hours most people will find themselves in a much better place to make a decision on the right merchant account provider.

Though merchant accounts are considered to be an insignificant part of doing business to some, they actually impact every single transaction that is made through a credit card. Even though credit card processing may seem boring or complicated, and it may seem that there are so many other things that are more important, merchant accounts are foundational components to a successful business. The only time credit card processing usually gets some attention is when it is not working properly or the charges seem to be outrageous, and by setting up the right merchant account to begin with, these problems can be vastly diminished.

The first step is to do some research and shop around. Even taking a few hours to search the web for various pricings and charges will help you make a much better decision. In the case of a new business, it is wise to spend time researching weeks prior to an actual need for credit card processing. This will prevent yourself from being rushed into a decision that you will regret. Internet merchant account research should include topics like the different types of merchant accounts, the fees associated, common problems, initial costs, and actual rates.

When it comes time to choose, be sure you pay attention to the actual transaction charge rates. It is surprising how many customers will actually sign a merchant contract without ever seeing their rates. Even if you have already discussed the rates with a sales representative, make sure they are correctly noted in the application. Also, if the rate looks a little too amazing, make sure you read the fine print. Be on the look out for other hidden fees or charges, because as most things, if it seems too good, it probably is.

The most important part of the process is to take your time. By rushing an application you only leave yourself open to make a mistake that might cost you thousands in fees and transaction percentages. This is something your business will have for a long time, and in order for things to run smoothly and at a minimal cost, a good merchant account is extremely important.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

One of the few intimidating factors of online business is security. Some business owners are timid to launch into the online retail world for fear of fraud or identity theft for themselves or their customers. That is why it is important to choose an internet merchant account provider that uses SSL encryption to protect your information as well as your clients identity and payment information. With SSL encryption, you can rest assured that your business transactions are secure and protected.

Secure Sockets Layer, or SSL is basically a way to transfer data with military grade security. This extremely popular and proven method is utilized by every browser and web server, as well as virtually every transaction website of any significance. SSL is basically a form of encryption that disguises the information transferred on the Internet. Anyone can tell that a page uses SSL encryption by looking at the prefix of the url. Those web pages with encryption will usually start with the letters “https”. When information is encrypted, it is basically written in a form of code that is extremely difficult to break without the encryption key.

Web browsers, such as Internet Explorer Firefox, utilize SSL by having digital certificates that serve as their SSL identities. These certificates are used to create public encryption keys that are sent by the browser after the initial authentication of a transaction. The website’s server then decrypts the key and another set of keys is created for simultaneous negotiations that may follow. Once the keys are generated, the transmissions or transfers begin through a secure tunnel, which is also extremely secure.

This kind of protection is extremely important for any online merchandiser, service provider, or any business that deals with private information of any kind. Not only for the protection of clients, but also for building the right kind of trust for clients to feel comfortable in making online transactions. SSL should also be considered extremely valuable to those involved in industries where fraud is quite common. Industries that people are already suspicious about need to offer some sort of security guarantee in order for customers or patrons to feel comfortable doing business with them through the web.

Secure encryption like SSL adds protection for you and your customers as well as providing legitimacy and trustworthiness amongst your clientele. Take the time to make sure your merchant account provider, or payment gateway uses the proper encryption so that you are not left vulnerable to fraud or responsible for someone else who is.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

With the increase of Internet sales, thousands of people are getting started in the online retail world, seeking their fortune. Yes, there is quite a fortune to be had, but only when done correctly. Online buyers are becoming savvier by the second, and just as we have found an increasingly scrutinizing consumer eye in the real retail world, online consumers are very leery of losing their money or getting ripped off. That is why every ecommerce business must be very strategic in establishing their web presence and customer interface. Here are a few suggestions to get you started along the path of a profitable online business.

Filling your website with valuable, rich content regarding the subject matter of your business is an invaluable way to boost your site to an authority status. The better your content, the more people will link to you and the more people will become engaged. This makes them much more likely to return and spread the word to others. There is no substitute for quality verbiage and helpful content. The more unique and focused your website and its content, the more likely visitors are to consider you an authority in your niche of business. Fresh, quality content also influences your business’ branding effort. Branding is one of the most important aspects of your business image, and with the advent of ecommerce, it may very well become the single most important part of your marketing presence. Consider how your business might effectively develop your own brand name. It will go a long way.

The next very basic thing to include on your website is the ability to process credit card payments. Credit card processing decreases overhead, increase ease of purchase, and legitimizes your online store. In order to establish credit card processing you will need to obtain an Internet merchant account. There are various providers and plans, so do your homework and find an Internet merchant account that works best for you.

If you really want to be successful, you should also concentrate on the design concept and development of your website. Many online retailers under-budget or spend little time considering their website’s actual appearance. Believe it or not, this is actually a very important factor for online buyers. Just like in the real world, people like to be surrounded by nice design and organization while shopping. This is also something that will continue to shift as your business grows, which leads me to my next point. You must use some type of tracking or analytics on your website so that you can follow your visitors and see where they might be having hang-ups or where you are losing their attention. This is a constant process of improvements and is vital for maximized profits. Leave your site alone, and it will grow stagnant.

The final, most important concept when starting an ecommerce website is a long-term vision. Many retailers are looking to start turning profits immediately, but the reality is that most sites take several months if not years to develop into profitable endeavors. For this reason it is important to keep working hard to improve your site with a vision for the future. Just because you are not seeing the results you expected up front does not mean it will not develop into an extremely profitable business. So hang in there!

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

With the surge of the cyber world, home businesses have never flourished more than they are now. Whether you are an online retailer, artisan, craftsman, or practice any number of trades in the comfort of your own home, there has never been a better time to let your business grow. One of the most important steps in promoting your home business is being able to take credit card payments. You will be amazed at the level of legitimacy presumed from this simple ability. Accepting credit cards can increase sales, allowing customers to purchase or make payment immediately, and it can also reduce the number of bounced checks or invalid payments.

Though credit card processing can really impact the level of success a home business experiences, many business owners remain hesitant, and though the process may seem intimidated from the outside, the reality is that accepting credit cards has become an increasingly simple process. If it isn’t the process that worries home business owners, it is the fees. Many small businesses are afraid of the fees and credit card percentages that will be deducted from their sales when using credit card processing. However, with the rapid growth of ecommerce and the flourish in the number of credit card processing providers, the industry has become extremely competitive, offering much better rates to new businesses. In almost all cases, the sales increases make having the ability to take credit card payments completely worth the effort and fees.

The first step in the process that a business operator should understand is that they will need to obtain a merchant account. Merchant accounts can be secured though banks, third-party providers, as well as a number of Internet merchant account providers. Most people are turning to Internet merchant account providers because the fees and rates are far more competitive. Another advantage to establishing a merchant account in this way is that most providers also have the ability to help you set up everything else you need. They will either direct you to, or provide you with a payment gateway, recommend website tools or changes, as well as help you test an order.

There is no reason to delay in obtaining a merchant account and moving on your way towards accepting credit card payments. Many people never deal in cash any more or lug around old receipts, and paying with a credit card makes things simple while providing them with a record of their transaction. So take the time, do your research, and find the right Internet merchant account provider for you. High risk merchant accounts and offshore merchant accounts are also available through some providers.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!

Every merchant account agreement has its own policy on the implementation of fees associated with processing payments. The convenience of easily accepting credit card payments over the internet brings an incredible amount of freedom and opportunities to business operations, but with that convenience comes some cost which takes the form of credit card processing fees.
In order to take payments online, four different things must be in place, and each may come with their own host of fees and charges. These necessities include a merchant account, a shopping cart system, some type of web hosting service, and a payment gateway, and they can each tack on their own fees and pieces of the pie if you are not careful. With the competitive nature of merchant accounts in the US, many merchant account providers also provide some of these other services in packages or eCommerce bundles. I will describe the different types of fees that may be associated with setting up your merchant account and credit card processing. Be sure to ask about each of these fees to be certain you are aware of everything that will be charged to your account.
Some merchant account providers will first charge an application fee or processing fee to cover their expenses for looking over your credit history, business history and background. Many merchant service providers wave this fee to gather more business. This is not necessarily the best scenario, as some providers that do charge a fee, charge it because their time is valuable and thus cannot be wasted. This only adds credibility to that provider. After the application fee, there is usually some type of membership fee which is most commonly charged on an annual basis. Membership fees are most common when purchasing merchant account services for specific industries or through trade organizations. Then the Set-Up fee usually comes next. This is some type of flat fee for the activation and setup of your account and may also include gaining access to an online payment gateway. This gateway access will be the portal you use to actually make the credit card transactions online. If you are purchasing these services individually, there will certainly be some type of access fee for using the secure server for approving and processing credit card transactions through a payment gateway. As I said before, some merchant services may include this payment gateway way in their initial set-up fee.
Once the account is in place then come the monthly fees. Monthly service fees are usually in place to make sure a merchant service provider covers their maintenance expenses when the income for that account is below a certain amount. This may look like a base amount a business must pay for merchant services when there are little or no sales. Merchant account providers make the bulk of their income by collecting a percentage of every transaction. Credit card companies take their cut of that percentage, and the rest is income for the service provider. That is why other fees must be charged to cover accounts that have little or no income. It is difficult to cover their costs when they are not gaining enough in transaction percentages.
The last most common fees that many businesses will encounter with merchant services are chargeback/reversal fees. Any time a credit card payment is charged back by a consumer, the merchant service provider will usually have a predetermined fee for correcting the situation. These are very similar to overdraft fees or bounced check fees for a regular bank account.
It is important to ask about each of these types of fees that might be associated with setting up an internet merchant account for your business. As I said before, you will encounter many providers that combine or eliminate fees to increase their business and add value, but it is important to verify what that provider’s policies are regarding each type of fee so that there are no surprises.

For more information on echeck processing, high risk merchant accounts and online credit card processing. please visit www.stradafee.com!