To be able to process credit cards using a real-time merchant account, there is a startup cost. I haven't found a single company that does not charge some kind of startup fee. This fee is a one time cost and can range from $99 to $999, depending on what merchant provider you choose. The reason why the prices varies so much, is some providers own their own gateway processing systems and some are resellers for processors.

Credit Card Fee (Discount Rate)

This is the fee that is charged by Visa, MasterCard, Discover or American Express. This rate can range from about 1.99% to 2.49%. The national average is around 2.35%. American Express is the only one with their separate rate which is usually around 3%. The credit card fee is always taken off the top along with the transaction fees before any money is deposited into your account.

Transaction Fee

Whenever you process and charge a customer's credit card, there is a transaction fee involved. This is to pay for the network and computers required to make the transaction happen. Most providers charge anywhere from 20 to 50 cents per transaction.

Statement Fee

Depending on how you are setup, your bank and/or your payment processor will send you a monthly statement, detailing all the transactions and deposits that have been made into your account during that particular month. This fee varies, but usually ranges about ten bucks a month.

Gateway Fee

For you to be able to process credit cards live using your ordering system, there are programs and software required to accomplish the task. Your payment processor may charge a monthly gateway fee to cover their expenses to process your credit cards in real-time. This fee generally ranges from $10 - $30 a month.

Monthly Minimum Fee

The majority of Merchant Providers have a monthly minimum. This is a fee that is imposed if your credit card charges (Discount Rate) doesn't add up to their monthly minimum. For example, your monthly minimum is $25 a month. If you only sold $100 worth or products for that particular month, then it would cost you say 2.35% for charging the card, 30 cent transaction which equals to $2.65. Now, that is $25 - $2.65 = $22.35, so you would be charged $22.35 for that particular month.

Programming Fee

This fee generally relates to terminal or PC software merchants. Some companies charge a programming fee to program your terminal or your PC software program. This programming usually consists of entering a few numbers and details so your terminal or software will be able to work with their system and record everything properly. The companies that charge a programming fee usually start around $95.

Some merchant providers charge a setup fee to create your account and get you setup. This can range anyway where from $50 and up.



site hosted & developed by