Merchant Account - Tips

What is a Merchant account?A merchant account allows a business to accept credit cards, debit cards, gift cards and other forms of electronic payment. This is also widely known as payment processing or credit card processing.Now, to select a merchant account you wil need to take the following into consideration:1. Statement.- the charge each month for issuing you statements on all transactions2. Application fee.- some institutions will charge you for the privilege of applying for an account, regardless of whether your application is successful or not.3. Setup fee.- once your application has been approved, there may be other fees associated with establishing the account.4. Discount Rate.- a percentage deducted for each product sold5. Transaction.- added to the discount rate, a flat rate on each transaction6.- Monthly Minimum.- what you will be charge regardless of the level of sales each month7.- Reserve.- some providers require you to maintain a certain level in the account to cover chargeback fees.8.- Chargeback.- the killer fee which may cost you up to US$30 per fraudulent transaction.Now you will need to evaluate if you have good credit or you are seen as a high risk by the merchant account. Also the amount of transactions and money you are going to be processing monthly. The cost you are willing to pay for the service. The security level you can affore.Remember that better merchant accounts are not always the ones that charge more so look for one that charges the less and offers everything you need.
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  • excellent advice, this site is the best one out there bbwo, iam so glad that i decided to join with so much info and being new with my own daycare i feel like a pro. thanks sharon martin.
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