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PROCESSING RATES OF ONLINE HIGH RISK MERCHANT ACCOUNTS

Good merchant accounts are an asset to your business by increasing your sales volume which results in increased profits of the company. However, if you don’t do proper research and don’t look at the fine print carefully then you may end up buying a merchant account that is more a liability to your business than an asset. According to historical data, merchants who do not look through the fine print to find out about hidden charges end up paying more than those merchants who are charged higher rates. Be very careful, as you might not be able to get out of it because you would also signed and expensive contract which penalises you if you want to change your merchant account provider.

Therefore, the first question to ask the merchant account provider before getting an online merchant account is what are the fees and rates charged by you? You should inquire the fees and rates for each of the merchant account services. Then do the same with several merchant account providers and choose the best. Some wise merchants search for the fees and rates on the internet also. If you see through the pages related to pricing then you will find your answer. The lowest you might see would be around 1.59% for an online merchant account rate. But don’t be fooled by that advertisement. You have to dig deep and find out what the company is offering at that low price and more importantly are there any hidden fees.

The first thing that you should do when you see an advertisement such as the one above is to go through the fine prints very carefully. For example, the ad which said 1.59% would actually mean that the company is charging that rate for debit card transactions and not credit card. Therefore, it will not help you much. The real thing that you should find out is what is the rate for the processing of credit cards? Not debit cards. In most cases the rates will be more than two percent. You will be better of to find a credit card processor who does not charge different rates for credit and debit cards so that you can take advantage of debit card’s lower acceptance cost.

Beware that the processing rate is only 1 component in the cost of processing, but it is the most significant one. Also look into the issue of dissimilar processing rates charged for different varieties of the credit cards. For example, a few of the rewards, commercial and b2b credit cards attract a higher processing rate than other types of credit cards. There may be several other charges and fees. Therefore, make sure that you will be aware of each of them and also be sure that your low credit card rates are not counteracted by higher charges elsewhere. There are several tools that are available on the internet to help you to estimate what your overall cost for processing each transaction of the credit card will be.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.