Merchant account fees can be very confusing. There can be so many hidden fees that you really need to be smart about what questions to ask before signing up.
Some of the costs that you will likely incur:
- Set up fees – Many merchant accounts charge around $200 for set up. You can find some that will really vamp this up and charge near $1000. Be very careful here. Make sure you know what this fee is. This set up fee can change depending on the services that you select to receive from the company. The more services, the more the set up charge is bound to be.
- Discount fee – This is usually somewhere around 2%. That means that for each sale that you make 2% of the cost will be taken and go directly to the merchant account provider. All companies have a discount fee. It is just the name of the game. Merchant accounts provide a great service to you and your customers and you have to pay for it.
- Transaction fee – This fee is usually a set cost. Many times it is right around .30 per sale or transaction. This is in addition to the discount fee. Don’t be mistake and think that there should be one fee or the other. Typically, there are both fees. Keep in mind that .30 per transaction is an estimate as is the discount rate estimate above. Companies can charge what they see fit.
- Monthly fee – Most companies will charge a monthly fee. Some will make the monthly fee dependent on your level of business. They may say that you have to do “x” amount of business or you will pay a monthly fee.
- Statement fee – So many merchant accounts will have you agree to the fact that there is a statement fee. If you are not okay with paying for a statement fee you can always find a company that doesn’t charge such fees.
Our pick for great merchant account services: