Merchant account fees other than discount rates also deserve consideration. These can include monthly charges such as authorization or request fees applied on each transaction statement fees charged to provide monthly overviews minimum monthly fees if transaction totals drop below a certain dollar level batch fees charged for each account settlement customer service fees that are added on by some providers and chargebacks that can occur if a transaction is disputed or denied. Low cost Merchant account fees helps small business. Some providers also charge an annual account maintenance fee or an early termination fee if a business cancels their service during an agreed contract period.
Merchant Account rates deserve comparison
Merchant account rates can vary considerably due to a number of factors, and even between individual providers. The discount rate that applies to a merchant account consists of various fees, network charges, assessments and mark-ups. The largest portion is the interchange fee charged by credit cards companies such as Visa® or MasterCard®. Another portion of the discount rate is based on the transactions that the business accepts, in essence a percentage of each sale processed.Merchant Account rates comparison help merchants to decide best merchant account from providers.Business looking at accepting credit and debit cards should compare different providers and options before deciding on the best account for their individual needs. Check with merchant account providers before getting the merchant account.
Merchant account rates are directly affected by different types of transactions
The type of transaction impacts a Merchant account discount rate. In the commonly used pricing method, known as the three-tier model, credit card transactions fall into one of three categories:
Qualified transactions, generally consumer credit card acceptance processed in a standard, swiped card manner. These transactions carry the lowest discount rate.
Mid-qualified transactions do not qualify for the lowest discount rate for various reasons a keyed in transaction rather than swiped, or one using a business or rewards credit card. These transactions carry a higher discount rate than qualified.
Non-qualified transactions include all those processed that do not fall into the other two categories. These carry the highest discount rate.
Transactions involving debit cards are becoming increasingly popular. These usually have much lower discount fees than credit cards the rates charged will vary depending on whether or not a PIN is used in the transaction.