Merchant Account Rates & Fees

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Merchant Account Rates Too Good to be True

An online search for merchant accounts through your favorite search engine will produce countless results from merchant service providers promising retail rates as low as 1.39% and e-commerce rates as low as 1.99%. You know the ads - the ones that "guarantee the lowest rates and fees". Aside from the fact that these rates seem too good to be true, doesn't it seem kind of that every provider can guarantee lowest merchant account rates? Merchant Account Rates Too Good to be True...

Merchant Account Pricing & Volume

When it comes to credit card processing and paying interchange fees - the more you make, the more you pay. But when it comes to the rates and fees that you pay to your merchant account provider, this is not always the case. Tiered, enhanced recover reduced (ERR) and interchange plus pricing are all volume based pricing models, but flat fee merchant account pricing is not. Merchant account pricing & volume...

Affect of Increases in Interchange Fees

Businesses that accept credit cards feel the pinch when Visa and MasterCard raise their interchange fees, but some are affected more than others. Depending on which type of pricing structure your merchant account utilizes, you may be paying a lot more than you think when interchange fees are increased. Increase Interchange Fees...

The Latest & Greatest: Flat Fee Merchant Account Pricing

The interchange plus merchant account pricing model is quickly becoming the most sought after form of pricing for businesses seeking the best merchant account. It's often touted as the only truly transparent way to process credit cards. While this may be true, it doesn't tell the whole story. Flat fee merchant account pricing...

Inconsistent Buckets

If you're processing credit cards on a tiered merchant account pricing model, inconsistent buckets are a vital subject for you to understand. The term inconsistent buckets is used to refer to a merchant service provider's ability to dictate at which tier an interchange category is charged on a tiered merchant account pricing model. Inconsistent Buckets...

Just give me the best rate!!

The biggest mistake that you can make when searching for the best merchant account is to throw negotiation out the window in an attempt to strong-arm providers into giving you their lowest rates and fees right away. The problem isn't that they don't want to help; it's that they don't have enough information to offer a quote even if they wanted to. Best Rate

Flat Rate Credit Card Processing

A flat rate merchant account would make the lives of business owners and accountants much easier, but they eventually come to realize that there's nothing flat about merchant account fees. Fortunately, there is something close. While it still won't boil processing charges down to a single rate, interchange plus pricing does apply a flat mark-up to all discount fees. Flat rate credit card processing...

Interchange Pass Through

I've written a few articles on the important subject of interchange and it's slow but steady rise in popularity as the preferred merchant account pricing structure. The demand for interchange pass through pricing has been fueled by the rapid spread of information online that has led to increased merchant awareness. Interchange is a complex topic, but simply understanding the basics of how it affects the credit card processing fees that merchants pay is vital knowledge for any business owner or manager. Interchange Pass Through...

Merchant Account Effective Rate

Anyone that's had to deal with merchant accounts and credit card processing will tell you that the subject can get pretty confusing. There's a lot to know when looking for new merchant processing services or when you're trying to decipher an account that you already have. You've got to consider discount fees, qualification rates, interchange, authorization fees and more. The list of potential charges seems to go on and on. Effective Rate...

Merchant Account Basis Points

The terms "basis point" in reference to credit card processing and merchant accounts is used to refer to the percentage of a sale that a business pays their service provider to processing a credit card transactions. Basis points sound a lot more complicated than they really are. Simply put, the basis points are 1/100th of 1 percent or 0.01% and they're used specifically when referring to the discount rate that a merchant pays to process credit cards. Basis Point...

The Mainstreaming of Interchange Pricing

Until recently interchange pricing has only been available to merchants with enough processing volume to support the profits that merchant service providers have become accustomed to reaping from the conventional three-tier pricing structures that have dominated the merchant account landscape. Interchange Pricing

Merchant Account Rates: Interchange-Plus VS. Tiered Pricing

If you're like most business owners, deciphering exactly how merchant account fees are charged is a necessary but confusing task. Understanding the different pricing options available and which one is best for your business isn't always easy. This guide will explain the different merchant account rate structures with minimal industry jargon to provide you with a solid understanding of how fees are assessed. Merchant Account Rates

Credit Card Processing Expenses You May be Paying without Even Realizing It

Paying close attention to your credit card processing expenses is a must, bust sometimes even the most conscientious merchants miss some not-so-obvious costs. This article covers three common processing expenses that you may be paying without even realizing it. Complete article...

Credit Card Reward Programs - Merchants Lose, Consumers and Banks Win

Frequent flyer miles, retailer discounts, cash back and more; if it exists, you can get a credit card to earn rewards for it. As the overall use of credit cards increases so too does the demand for rewards credit cards. Credit card rewards programs have virtually no negative aspects for issuing banks. Complete article...

Reduce merchant account fees by customizing fee structures to fit your business's needs

Merchant account rates and fees are not set in stone. Competition among merchant account providers will allow you to bargain for different rate and fee packages. Knowing the fees that will impact your business the most will help you to use your bargaining power wisely.Complete article...

What is an 'over limit fee'?

An over limit fee is a charge that catches most merchants unlucky enough to experience it by surprise. An over limit fee is imposed on a merchant when they process more than their declared processing volume in any individual monthly period. Complete article...

What is a merchant account monthly minimum and how does a monthly minimum work?

A merchant account monthly minimum is the minimum dollar amount that a merchant will be charged within a monthly period. Merchant account monthly minimums can appear pretty complicated and confusing at first but actually become pretty transparent once they’re explained properly. Complete article...