Saturday, March 06, 2010

Credit Card Merchant Account Fees

If your company is like most, you get a lot of benefit from the ability to accept credit cards with your merchant account. However, there may be as many charges, it can be difficult to find out exactly how they will affect the bottom line. When first starting out, it might be tempting to sign up a merchant account that has little or no installation costs, but consider what the cost would be to run the account. When you get an idea of what your volume will be, it is easier to find out what your sweet spot is in the balance between the various fees for accounts that are offered. 

For a start-up operation, it seems to make sense to get a merchant account that does not require you to sign a long term contract. Some credit card processing companies will require long-term contracts with hefty early termination fees to keep your business if business is not booming. However, it will be possible for you to find an agreement that will not require a long-term effort and will not require a connection fee. Minimum charges on the order of $ 25 per month is quite common, regardless of what the small company, you actually do, once again, you should be able to find internet merchant accounts that charge monthly minimum. Annual credit card processing fees can vary from $ 50 to hundreds of dollars, but it is still possible to avoid being charged such a "membership fee", or whatever else they want to call it, with the right deal. 

In short, with a little shopping you can avoid the pitfalls of long-term contracts, at least monthly and annual fees, and still get reasonable transaction costs. A small warning: It may prove very costly for you if your merchant account is not compatible with the Payment Card Industry Data Security Standard (PCI DSS). It is in your interest, and that in your bank account on your grocer to become resistant to fraud, but you should not pay an arm and a leg for it. The right deal is out there for you, with low startup and operation, without sacrificing safety.

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