If you’re just getting started in a new home business, online, or small business you’re going to need a merchant account in order to accept credit cards. But do you know what to look for when it comes to fees? Let’s take a look at some of the different fees you’ll see so you know what to watch for.
Setup Fees: These fees can range all over the place. I’ve seen some companies that will waive this fee under certain circumstances, and others will charge several hundred dollars. So watch out for this one!
Per Transaction Fees: Every merchant account charges some sort of per transaction fee. They usually break these fees up into two different ones. One is a flat rate such as $0.30, and the other will be a percentage such as 2.5%. As you process more and more with a merchant company the rate will usually go down. Or at least you can renegotiate it.
Statement and Other Monthly Fees: There are several monthly merchant account fees that you’ll run into. Some of the standard ones are statement and gateway fees. These fees range all over the place. Some companies have decided to make this a yearly fee rather than a monthly fee.
Account Limits: This is another thing to watch out for. A lot of merchant companies will put a limit on how much they’ll process for you each month. This is a huge problem if you have a good month that goes over that limit. You’ll have to renegotiate and go through a lot of other problems. Look for companies that either have a high rate or are very easy to work with on this.
So there you have it. These are some of the main fees you’ll see. There are others as well, so take everything into consideration when doing your comparisons. If you pay attention to these different merchant account fees as you’re comparing companies you’ll be able to get the best deal.
