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Merchant Account Fees
So you want to open up a business and accept credit cards. You understand what that entails, but how much does all of this cost?
Many companies, but not all, have an application fee. This fee is usually about $0-$100 dollars. Now, you need to buy the software which varies from $99 and up to buy, or about $20 a month to lease. Although leasing sounds more practical, it pays off more to buy it upfront and have it for your other businesses as well. It is very difficult to break a lease after it has begun. Programming can cost up to $100 plus a one time fee. There is a 1.49%-4% discount rate which is a fixed rate that is deducted from purchase cost. In addition to the discount rate, there is also a deducted transaction rate of about $0.50-$0.20 for each transaction. A fee based on your transaction amount can result as a monthly minimum. Monthly minimums can vary from $0-$25 dollars a month. A gateway access fee is about $0-%25+ a month. This is for the security of your site and is different from the merchant account processors. Some processors charge a statement fee of about $0-$15 dollars a month. A statement from your bank with all of the transactions is sent to you like a credit card bill would be. Some charge a daily closeout fee of about $0.15 a day. If you have an AVS system you will be charged $0.05 a day. AVS systems check and verify addresses to prevent fraud so it is well worth it. A chargeback fee is $5-$35 dollars every time it occurs.
Although this seems like a lot it is well worth it compared to the money you will be making from accepting credit cards. In this day in age most people carry around credit or debit cards over cash which makes it easier for them to pay you. Ask your merchant account sales representative for more information.
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