If you're just getting started in a new home business, online, or small business you're going to need a merchant account in order to accept credit cards. But do you know what to look for when it comes to fees? Let's take a look at some of the different fees you'll see so you know what to watch for.
Setup Fees: This is the first fee you'll run into when dealing with a merchant account company. I've seen these fees range anywhere from $50-$700, so you really need to pay attention to how much a company is going to charge you.
Transaction Fees: Every time you process a transaction there will be a fee attached to it. These fees are usually two fees in one. The first is a flat rate, such as $0.25. The second one will be a percentage of the transaction such as 2.9%. This is another great way to compare companies. Also be aware that as you process more and more transactions a month you'll probably be able to renegotiate this rate.
Statement and Other Monthly Fees: There are several monthly merchant account fees that you'll run into. Some of the standard ones are statement and gateway fees. These fees range all over the place. Some companies have decided to make this a yearly fee rather than a monthly fee.
Processing Limits: Another problem you can run into if you're not careful is processing limits. You see, some companies will start you out with only being able to process a small amount, and then as the need arises you approach them for an increase. Other companies will just grow with you automatically. This can be a huge problem if you have a large order come through, so check their terms.
There are usually other fees that you'll run into from time to time, but if you use these fees as a baseline to do your comparisons you should be able to find a really good deal on your next merchant account.
About the Author:
If it's been awhile since you've had someone look over your merchant account rates, it's time to have a professional company do it. There are plenty of companies out there, so chances are you could be spending less in fees!
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