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
Card Fee (Discount Rate)
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.
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.
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.
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.
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.
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.
merchant providers charge a setup fee to create your account and
get you setup. This can range anyway where from $50 and up.