8-4 Merchant Account Price Gouging on Rates

Price Gouging on Rates - Rates That Are Too Good Too Be True

Discount rates are a grey area to most average business people. When looking for a merchant service provider, or when analyzing your current provider, you need to look at all of the discount rates that you are being charged including qualified, mid-qualified, and non-qualified fees. Some merchant service providers will offer a very low qualified processing rate, and then inflate the mid and non-qualified rates to make up for the loss. When shopping for a merchant account, be sure to compare all of a processor's rates and ask how and when each rate will apply.

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