MERCHANT SERVICE PROVIDER RATES

2007-03-08 10:33:40

( Business )



Accepting credit cards is a necessity for online business. Purchasing through credit card is convenient for customers dealing with an online business. Merchant service providers charge various rates on merchants who accept credit card payments for their online businesses.

Merchant service providers are specialized companies providing merchant services to process credit card payments particularly for online businesses. They are considered more flexible in servicing small businesses than regular banks.

Classification of Transactions

The amount that merchants pay for each transaction depends on the classification of the transaction or sales. Transactions classified as high risk are charge with higher surcharge compared to non high risk transactions. Corporate cards are classified as high risk transaction.

Costs

Accepting credit card payments requires you to pay percentage sale, transaction fee, statement fees, annual fees, programming fees, internet processing fees, and customer support fees. A Percentage sale is actually termed as discount fee by merchant service providers. It is actually not a discount to merchants but a cost that merchant service provider charge for a percentage of your sales. The rate that you will pay will be based on the volume of sales that is expected to be generated to be generated by your business every day. A transaction fee is charged on top of the percentage sale discounted on your transactions.

The rest of the fees charged to merchants are related to the maintenance of your merchant account. These fees, however, are expected to increase the cost of maintaining a merchant credit card account. Thus, merchants are advised to review all costs incorporated in every merchant service packages offered by merchant service providers. Try comparing the costs charged by various merchant service providers before deciding on whom to give your account.

You have to be aware of the possibility of fraud in accepting credit card payments. Your merchant service provider must be able to help you outline some safety nets in minimizing, if not avoiding, incidence of fraud.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.