Software
Electronics
Mobile
Web Services
Appliances
Entertainment
Small Business
Auto Tech
More »
Science Tech
Careers
Video
Web Services
»
Internet / Ecommerce
»
Credit Card Processing Review
» Learning Center
Share this
[X]
del.icio.us
Digg
StumbleUpon
Yahoo! My Web
Facebook
Google Bookmarks
ma.gnolia
Newsvine
reddit
Windows Live
Credit Card Processing Review Learning Center
Understanding Credit Card Processing Fees
In this video, we explain the many credit card processing fees so you aren't caught off guard.
With a credit card processing service, you will have to pay a lot of fees and extra costs. I’ve listed the top ten fees you’ll need to watch out for, so they don’t take you by surprise. Number ten: There will be a fee to purchase equipment. You will have to buy the point of sale terminals and software if you need it. Number nine: Termination Charge. If for some reason you feel dissatisfied with your provider, you have the right to terminate the contract. But be careful, because breaking the contract results in a termination fee. Number eight: Statement fee. It’s a fixed monthly fee that virtually all processors charge. The fee is linked with the statement that is sent to you monthly. The statement shows how much processing you did during the month and what fees were charged as a result. Number seven: Address Verification Service or AVS Fee. You get charged an AVS fee by the processor to allow you to use AVS on your internet charges. AVS helps reduce fraud by providing the address and zip code of the cardholder. The fee is usually small, and you’ll need it if you want to accept Visa and MasterCard because they require AVS on all keyed accounts where cards aren’t to be swiped. Number six: Chargeback fee. A chargeback happens when a shopper disputes a charge on their credit card. A chargeback fee is the rate of monthly sales “held†in your reserve account to offset any fraudulent transactions. Number five: Gateway fee. Providers will charge you for using a payment gateway. The fee is for the use of the gateways transaction processing services and usually includes items such as online payment cancelations and transaction reports. Number four: Monthly Minimum. It’s the minimum amount the processor needs to have in fees. As long as your credit card fees meet or exceed this minimum, you won’t be charged. However, if your monthly fees are less than the minimum, you will be charged the difference. For example, if you have $20 in fees in a given month, and your account has a $25 monthly minimum on it, you will be charged an additional $5 to meet the monthly minimum. Number three: Transaction fee. The merchant has to pay a fee for every transaction, regardless of whether or not the transaction is approved or declined. Number two: Discount rate. It’s a flat percent charged to the merchant for every transaction. The monthly amount of this fee depends on the transaction amounts processed during the month. Number one: Set-up fee. It’s a onetime fee for getting started. Watch out because sometimes set-up fees are attached to your first month’s bill, so double check and reconfirm start-up fees when creating your merchant account. All though the actual dollar amounts and rates may change, all these fees are fairly standard. If you are comparing costs, it is a good idea to call a processor’s sales rep and ask them for a complete breakdown. You can usually get a free rate quote from processors, like our current Gold Award winner, Flagship Merchant Services.
TopTen Product List
1
Flagship Merchant Services
2
Merchant Warehouse
3
National Bankcard
4
Leaders Merchant Services
5
Chase Paymentech
6
Merchant One
7
E-Commerce Exchange
8
The Transaction Group
9
goEmerchant Merchant Accounts
10
Gotmerchant
See All Credit Card Processing (19) »
Most Popular Products
Best AntiVirus Software
2,831,852 views
Video Editing Software
2,266,633 views
DVD Copy Software
2,082,849 views
Registry Repair Software
1,704,533 views
Internet Filter Software
1,378,005 views