Small Business Credit Card Processing

The ability to accept payment via credit card is an important part of setting up a small business. Understanding the various fees and charges associated with a merchant account will help you get the best value for your money and help reduce the likelihood that you will pay bogus charges. Discount Rates While discount rate is a type of transactional fee I decided to mention it first because it is one of the largest fees. If someone purchases a product or service from a merchant for $100 and the discount rate is 2.5% then $2.50 is charged to the merchant and subtracted from the ... Read Full Story

By Alexander C. HemenwayAccepting credit cards is a very important part of doing business. In order to get the best value when shopping for a credit card processing company it is very helpful to understand the different fees and charges so you can get the best deal and not have to pay phony fees. Since there are many fees associated with merchant accounts this can be a complicated task. Here is a Read Full Story

Acquirer or Acquiring Bank:   Provides the merchant with the ability to do credit card transactions. It communicates with the customer’s credit card providing bank to authorize payment and transfer money (see Merchant Bank). Address Verification Service (AVS): Is a service that reduces the merchant’s likelihood for fraud by verifying the customer’s billing address during a credit card transaction. This occurs when the customer is not physically present to swipe their card. Authorization: Is the process by which the merchant bank communicates with the card holder’s bank to ensure that sufficient funds exist in the card holder’s account. Batch : This occurs when the ... Read Full Story

Selecting a credit carding processing service can be a complicated task since many processors tout themselves as being the best in the market. Here are 3 important things to consider when shopping for a credit card service provider. Cost Cost is probably the most important factor when selecting a processing company. There are 2 main types of fees, Transactional Fees and Monthly Fees. In terms of monthly fees, pay attention to the monthly statement fee (around $10), monthly minimum fee(between $15-30), and if you are doing credit card processing over the internet the monthly payment gateway fee (between $10-$20). Transactional fees include items such ... Read Full Story

There are a variety of fees you may encounter when setting up acredit card merchant account.According towww.websitemarketingplan.com, If a potential merchant account credit card provider does not mention one or more of thefollowing credit card processing fees:Application fee: - A charge to process your application for acredit card merchant account. Yearly membership: - Additional,annual credit card processing fees may be required to acceptcredit cards for certain specialized industries such as casinoaccounts.Set-up fee: - A fee or fees charged to process and activate yourmerchant account andor gain access to a secure Payment Gateway.Gateway access fees: - A fee for using the secure server suchas Authorize.net ... Read Full Story