COMPOSITION OF FEE WITH CASINO MERCHANT ACCOUNT
There are various charges or fees
collected by the banks or the merchant
account providers. The fees are charged
for various different services that are
given by the banks and the merchant
account holders to the customers. The
fee structure is determined by the
choice of the merchant account holder.
There is a fee called authorisation fee
which is charged for every transaction
which is sent to the credit card issuing
company for authorisation. This fee is
charged once the merchant account is
approved for the applicant. It is also
different than the transaction fee and
per product or item fee. There is
another fee which is charged to the
merchant account holder for providing
the monthly statement. This fee is
usually charged at the end of every
month. The statement also shows all the
transaction details which was done
during the month. The fee is directly
deducted from the merchant’s bank
account.
The structure of the fee composes the
actual working of the merchant account.
The merchant is also charged a monthly
fee which is fixed. In other words, a
merchant account holder has to pay a
fixed amount on monthly basis. This is a
type of maintenance fee which the bank
collects for updating the statement and
overall account management. This is a
cycle of payment which is for the
merchant account holder. It is fixed
according to the agreement that is made
between the merchant account holder and
the bank. A merchant may not have sales
in a month but this monthly minimum fee
has to be paid at the end of every
month. The merchant account holder also
deals in batch processing of the credit
cards. At the end of the day, the
merchant sends the transaction made
during the day to the bank for payment.
It can be done manually and also
automatically. Large scale merchandise
businesses have automated payment
systems. This is called batch fee. In
order to maintain a perfect balance in
the merchant account, a merchant has to
send across the transactions details to
the bank within 24 hours of the POS
(Point of Sale). In the past, the
merchants or the customers were charged
the customer service fee. However, in
the modern banking era, this system has
been eliminated. This fee was charged by
the banks in order to meet up for the
expenses and costs to maintain the
customer service department.
There is also annual fee which is
charged to the merchant account holder.
It is in the form of revenue to the
issuing bank. The fee ranges between $
49 and $ 399. It is charged against the
maintenance cost of the merchant
account. In some cases, some merchants
withdraw their account or end the
contract before the expiry of the term.
Early termination fee is charged to the
merchant account holder doing such. The
typical or common time period for a
contract is 1 to 3 years and may even be
extended up to 5 years. The fee is
charged against the risk of loss of the
bank.
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. |