getting-to-know-merchant-account-fees by MarijanStefanovic

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									Getting to know Merchant Account Fees

People who are getting involved with merchant accounts will probably
experience confusion along the way. This is because the terms, the
conditions, and the set of rules being implemented by most merchant
account provider can be hard to understood especially to people with no
background in finance and banking terms.

If you have a business and you are planning to get a merchant account to
be used in accepting credit card payments, the first thing that you
should consider is the merchant account fees. This is a very important
factor before obtaining a merchant account because this will give you an
idea how much to spend and what can you gain from these expenditures.

Aside from the "turnaround time" which is a important consideration to
keep you away from financial delays and other related hassles, the
quality of "customer service" given which include good customer client
relationship, and the "bank reputation" which provides longer operation
hours, tenure the industry, alternate choices for processing payments in
cases of failure in the system, and the technical support, the fee
structure should be the utmost consideration.

Experts say that before obtaining a merchant account, fee structure
should be examined very well to ensure that there would be problems in
the flow of payments. Studying the fee structure is important to know
what are the involved the fees monthly. Today more and more merchant
account providers offer lower fees but it doesn’t ensure that they give
better service. To ensure that you are getting the best merchant account
provider, consider the rate and terms on these fees that they charge:

1. The discount rate which most of the time make up the majority of the
costs made by your business. Experts say that this is the most important
fees to consider because if there is lower number of times that the card
is being swiped, there is a higher possibility that one is keying in
Internet transactions.

2. The transaction fees are those that are charged by the processor to be
able to process any transaction. People should also pay attention to this
because there is charge whether the transaction has been approved or not.

3. The PIN debit transaction fees because this refers to a fixed
transaction usually mounting up to around 70 to 80 cents. This should
also be a consideration because some processors that charge lower
transaction fees have higher hidden charges.

4. The Address Verification Service Transaction Fee or the "AVS" which
applies to those merchants that are not really swiping any transaction.
Make sure that this fee only range form 5 to 10 cents and should be
included in the transaction fees being charged.

5. The ACH Fee or the daily batch fee which is usually charged by other
merchant account processors when one settles their daily batch and they
transfer their settled funds into the bank account. Make sure that this
type of fee is not more than 5 cents to 50 cents only.
Other merchant account fees that should also be considered include the
monthly statement or support service fee, the internet gateway fee, the
voice authorization fee, the monthly minimum fee, surcharge and
partially-qualified or non-qualified fees, the application or setup fee,
the reprogramming fee, the chargeback or retrieval fee, the annual fee,
the cancellation or termination fee, and other hidden fees or junk fees.


								
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