Merchant Account Search

Most business owners do not, and it goes without saying that it’s very important to fully understand what you’re paying for. Generic statement, but merchant account providers generally have very complicated merchant statements- think telco statements, and then imagine it being even more confusing.

Merchant Account Fees
Every time you process a credit card transaction through your merchant account, you are charged both a transaction fee that is a flat-rate, and also a percentage of the transaction. This is called the transaction fee, and discount rate fee. To further complicate the fees, the discount rate is broken down in to four tiers- debit card transactions, qualified transactions, mid-qualified transactions, and non-qualified transactions.

Debit cards generally are the cheapest merchant account processing fees, since the bank takes little risk when someone enters their pin number. Qualified transactions are generally when the credit card is present, mid-qualified is generally for Internet merchant account transactions, non-qualified is when the card isn’t present, and when it’s normally a business credit card.

Tags: accept credit cards, merchant account providers

This entry was posted on Thursday, September 4th, 2008 at 2:54 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.