MERCHANT ACCOUNT PROVIDER COSTS

2007-03-08 10:33:40

( Business )



Merchant account provider helps you set up how to accept credit card payments online. He helps you set up your own merchant account and process credit card transactions for you. Payment gateway and website are needed in accepting credit card payments online. Accepting and validating billing information from customers are processed by payment gateway. The address of your company on the Internet is located through your website. It is where customers purchase your products.

Getting the services of a merchant account provider is the foremost thing a merchant must do. However, choosing a merchant account provider in the financial market is limitless. Merchants get overwhelmed on their enormous number. They need to know what to consider in partnering with a merchant account provider.

Cost and quantity of service should be the major considerations in choosing a merchant account provider. Merchants must understand the various costs charged by a merchant service provider for processing merchant accounts. Reliability of service must also be taken into consideration to ensure merchants security of transactions and faster processing of credit card payments.

Costs in Dealing with Merchant Providers

There are various costs related to the services of merchant account providers. Application fee, fixed fee, sales commission, transaction fee, termination fee and miscellaneous fee are the costs included in hiring the service of a merchant account provider.

Application fees are usually collected up front for the processing of merchant account applications. Some merchant providers, however, waive application fees. Fixed fee is the monthly statement fee charged to cover costs in handling your account. Sales commission is earned by the merchant account provider for every sales transaction you generate on your website. Transaction fee is a fixed fee charged for every sale a merchant generates. Termination fee is charged in the event that you decide to cancel your account with the merchant account provider. Miscellaneous fee is usually charged to the merchant when customers asked for a refund of their purchases.

Merchants in shopping for merchant account provider should use these costs as benchmark. Make sure to inquire about these and its inclusion in the merchant services agreement.


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