The credit card merchant account fee varies between account providers. When credit cards are accepted by using telephone or at retails using merchant accounts, the merchant need not rely upon other external payment processing. The process of accepting payments using the online merchant account results in processing fee. For enabling the processing, the merchant will need the internet merchant account, site host, shopping cart, payment gateway and the processing service.

The components of credit card merchant account fee are - application fee for processing the submitted application, annual membership fee - this is especially applicable to applicants associated with some specific industries. When membership applications are made through trade organizations comprising of executives, there will be waiver of set- up fee and also a reduction in the minimum amount.

Set up fee is a fee that is associated with activating the account and using the payment gateway. Authorization fees are charged when transactions are sent to banks for authorization. This fee is applicable irrespective of whether the request got an approval or not. Separate fee exists for accessing secure servers which perform the functions of approving as well as processing the pay transactions. This is either a separate fee or is included in the fee associated with monthly processing.

Monthly statements too are charged by some, while others will offer this service without charging extra. Discount rates are made up of many types of fees that have to be paid by merchants for accepting debit and credit cards. A significant part of this fee is ‘interchange fee’. ‘Interchange fee’ refers to the fee that the merchant’s bank has to pay the customer’s bank when cards are accepted by way of MasterCard or VISA networks. The price models used by banks for charging the merchants are three tier price models, six tier pricing model etc. The discount rates are based upon the risks involved in transactions and so it will vary from transaction to transaction. Since risks associated with retail transactions are higher than the on-line transactions, the discount rates vary.

Another service fee is called address verification service fee and as the name goes, it is the service involving the verification of the customer’s card number with his address. There is also another fee called fixed transaction fee that is charged for each processed card transaction. Monthly minimum charges are charged when other fee are lesser than a minimum. This fee is for maintaining the account. A fee called cancellation fee is charged when usage of the merchant account is discontinued.

Reversal fee or Chargeback fee are associated with transactions that are reversed. Batch fee is to be paid by merchants when they send the day’s finished transactions to banks. Batches must be closed at an interval of 24 hours to overcome higher rates. Maintenance fee is also called customer service fee and is charged to cover costs associated with the customer service. Quarterly or annual fee can vary depending upon the type of account provider. 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.