Internet Merchant Accounts

When applying for Internet merchant accounts, you will hear the term “qualified rate.” The qualified rate it he lowest rate you will incur when having a credit card charge processed. Many merchants may be concerned about the fees associated with Internet merchant accounts. The fees and charges you might incur include:

  • An application fee
  • An authorization fee (this is a fee charged each time a credit card is sent to the institution, whether it is accepted or declined)
  • A monthly minimum fee (to make sure you make a certain number of processes each month. If you don’t make it, you will be charged to satisfy that fee)
  • A statement fee
  • A batch fee (incurred each time you settle a terminal, which sends the day’s transactions to the institution for payment)
  • A discount rate (a percentage of each transaction)
  • And a per transaction fee (a flat fee charged each time a credit card is successfully processed)

Fees will vary from institution to institution, however all are based on Interchange. Interchange is the base rates used for all Internet merchant accounts and it determined by Visa® and Mastercard. Interchange bases their rates on tiers and include thing such as how easy it is for an institution to process the charge. For example, it is easier to process a credit card that is swiped through a terminal than it is to process one in which the credit card number is keyed into the terminal.

Internet merchant accounts are great ways to ensure you get your money with each online credit card transaction.

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