A merchant account handles credit card processing. This allows you to accept credit cards as payment. Statistics have shown people are more likely to purchase when shopping with credit cards instead of cash.

Selecting a merchant account provider can be confusing and time consuming. There are a number of factors to consider, such as credibility, reliability, fees, and customer service. The first step is to evaluate your business’s present and future needs. Will you require 24 hour uninterrupted service, international processing capabilities, or how about the turnaround time on transactions. What kind of customer service do they provide? All these services come at a cost. However, the fees associated with a merchant account shouldn’t be your exclusive deciding factor when choosing a provider. Here is a list and explanation of common fees charged by a merchant account provider.

Application Fee: This covers the costs of processing the “paper” work of an application. It is usually non-refundable.

Setup Fee: Fee for setting up the account once approved. This is usually a onetime flat rate fee.

Discount Rate: This is the percentage that the bank with holds from each transaction it processes.

Per transaction Fees: This is a small fee charged on every transaction the business does. It can range from as low as 15 cents, but may be as high as $1.00.

Monthly Maintenance Fee: This monthly fee charged for operating and providing access to the merchant account, and its services.

Monthly Minimum Fee: The minimum charged if you do not meet your minimum sales.

Annual Membership Fee: A flat rate fee that can be several hundred dollars to free.

Monthly Statement Fee: The cost of preparing your monthly statement is charged a flat rate usually around $10.

Customer Service Fee: A small amount between 10 and 20 cents charged each time you call customer service.

Gateway Monthly Fee: This applies to online merchants and is charged monthly for gateway processing services to the internet.

Chargeback Fees: A small amount charged for every outstanding transaction on your account that is disputed by the customer.

It may help to determine your business needs. You should know your product or service well and be able to estimate you monthly sales volume. Once you have narrowed down your selection list you can run a calculation to determine the cost the merchant account. By knowing the theoretical cost of the account you should be able to determine if the merchant account provider’s services are worth it.

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