MERCHANT ACCOUNT PRICING

While opening a merchant account, the important factor to be considered is the price. A merchant will never want to shell out exuberant fees while opening his/her merchant account. Though it is an accepted fact that the providers of merchant account have to make a living, it is simply unacceptable when the providers charge very high fees for opening merchant accounts. Hence, the providers need to be asked a few questions with regard to pricing.

Following are a few questions which need to be clarified from the providers of merchant accounts with regard to pricing:

-      Are the charges introductory or are they fixed?

Most of the providers of merchant accounts try giving super up front rates. Slowly, in the coming months, they increase the processing fees. Hence, it is best to go for fixed rates when compared to introductory rates.

-      Is the merchant account provider ready to give the fees and rates is writing?

It is advisable for a merchant to check if all the fees and rates that have to be paid are shown on paper. This information should never be kept away from the merchant.

-      What are the hidden fees?

Most of the merchant account providers have something called “hidden fees”, but some providers don’t. A merchant should make sure that all the charges which are not stated in the provider’s website are mentioned in writing.

-      Will a cancellation fee be imposed if the trader wishes to shift to another merchant account provider?

If a merchant account provider is interested in the business provided by a merchant, rather than in themselves, then the provider will not impose a cancellation fee. But, not all the companies have this point of view. It is best to look at the provider’s agreement and conduct enquiries in order to be of a safer side.

-      Is the setting up of a reserve necessary?

A provider usually hold a part of the earning made through a credit card on a monthly basis which will be eventually released. This is known as a reserve. It is advisable to try and avoid a reserve set up. This is mainly required for firms that process high volume every month. However, if a company’s credit is not very good, a reserve may be implemented.

-      What fees is charged for American Express and Discover? Is there a set up fee for these?

American Express and Discover usually have their own charges. These charges are on sliding scales are on the basis of what a firm sells and what is the volume of the projected sales. A nominal fee for set up is not charged by Discover at the last check.

-      What is the pass – through fee?

The pass-through fee is generally tiered as: Partially Qualified, Qualified, and Non-Qualified. In most of the cases, a transaction falls under the Qualified category. Non-qualified and partially – qualified are generally applicable is instances where the corporate credit-cards are being processes without the used of Addressing Verification System (AVS).