The Different Merchant Account Fees

2007-03-08 10:33:40

( Financial )



Merchant account fees are divided into other different payments. These are of different rate depending on the kind of credit card account and on various occasions. The rate of your debit card fee or visa merchant fee may be different from your mastercard fee.

If you use your visa credit card to purchase a product or service from a vendor, the vendor will be charged with a transaction fee as a part of the visa merchant fees. A transaction fee is one of the merchant account fees charged by an acquiring bank for every processed transaction. This is a flat rate depending on the qualification of the sale. A sale may be classified as qualified, mid-qualified or non-qualified depending on various circumstances.

Aside from the transaction fee, your vendor will be charged an authorization fee as part of the merchant account fees. An authorization fee is charged for each processed transactions. Whether the transaction was successfully processes or declined, the authorization pay is still charged to the vendor.

A chargeback fee is another kind of merchant account fees. This is charged for any assessed chargeback or refund to the acquiring bank. And like the authorization fee, this is paid regardless of the success of the chargeback. The rate of this fee is not dependent on the amount of the chargeback. This is much like the annual fees of credit cards except those that has no annual fee credit card like visa no annual fee or no fee visa.

Merchant account fees also comply with a minimum monthly fee. Meaning a merchant must pay a minimum amount every month regardless of the number of transactions done with in a month.

Plus a vendor will also have to pay a batch fee and a statement fee as a part of the merchant account fees required. A batch fee is charged when the vendor sends the complete accounting of the transactions done in a day to be paid. The statement fee is paid in order for the merchant to receive a copy of the monthly statement which tallies all the transactions and fees accumulated on the said month.


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