In
this example we will compare four merchant
account providers. This will give you
an idea of which provider may be best
suited for you. In this example we will
use Free
Credit Card Processing.com,
AmeriMerchant,
and
Total
Merchant Services.
1.
Free
Credit Card Processing.com:
For retail merchants the fees are as
follows $0 set up fee or terminal purchasing
fee or lease, when you sign a one year
contract. They offer a discount rate
of 1.79% and a $.25 transaction fee.
There is a monthly fee of $25 and a
statement fee of $10. If you use the
phone, mail or internet to process your
orders the fees are as follows: The
discount rate is 2.49%, monthly minimum
of $25 with a $10 statement fee, and
a $20 gateway fee.
Charge.com:
Free Web Terminal and Set Up. They have
a discount rate of 2.39%, 25 cents per
transaction, and $10 monthly statement
fee as well as a $19.95 monthly gateway
fee. Retail Merchants pay a 1.66% discount
rate.
Total Merchant
Services: With total merchant
services you are able to pay a monthly
lease for the equipment which is $19.95
monthly or you can buy the terminal
for $399.00. You are charged only a
.10 transaction fee with a 1.68% and
$9.00 monthly statement fee. If you
are an internet merchant or process
mail or phone orders the rates are:
$99-$399 for the hardware, 2.19% Discount
rate, $.15 per transaction and a monthly
gateway fee of $10-$25 depending on
the hardware used. There is also a $9.00
monthly statement fee.
AmeriMerchant:
You must purchase or lease equipment
from this Merchant, however they offer
competitive rates such as Retail Merchants:
1.61% + .25 a transaction, $10/month
statement fee, $25/month minimum. For
internet Merchants the rates are: 2.19%
- 2.40% depending on your processing
volume, .25 a transaction for terminal
processing (.06 extra for online processing),
$10/month statement fee, $25/month minimum.
These
are just some of the Merchant Account
Providers we recommend. As you can see
the rates varies between Merchant Account
providers.
Another
major factor you will want to consider
is Customer Service.
How well do they treat you? Do they offer
a 1-800 number in case of an emergency?
These are all factors you will need to
consider when starting your Merchant Account.
You need to look at the long term costs
instead of the short term gains. A prime
example is thinking that you will save
$399 by not going with the company that
charges for it's terminal when the company
that didn't charge for it, charged 10
cents more per transaction.
If you process 1000 transactions per month
thats $100 per month you are paying more
just because you wanted to save $399.
This is why you need to carefully look
at the pros and cons of each company.
You will also want to check to see how
long it takes to process payments.
Some companies offer to do it in 48-72
hours. You must always check the integrity
of the service before "applying".
Another way to check the integrity of
the company is by checking its website.
Check to see how long its been in business.
If you question the integrity of the site
you can check the whois of the website
by going to www.register.com and search
for the site. You can find the WHOIS information
and it will tell you the year the domain
was purchased.
Before signing any agreements or contracts
make sure you read the entire application
and check out the information. You will
want to find out what thr terms are if
they so choose to terminate your account.
What is their chargeback policy? Is their
a transaction limit? If so what is the
volume and what happens if you exceed
your limit?
You will also want to know if they process
international orders and what are the
rates for processing such orders. You
will also need to know if they are allowed
to make interest on the funds in your
account. Finally, find out what their
policy is if you are tied in for a lengthy
period and if you are able to let yourself
out of the contract. As with any large
transaction make sure you go over the
pros and cons of each provider and do
a thorough investigation.
Featured Merchant Account Provider »»
Total
Merchant Services
Check
out information on our Application page.
You will find information on what Merchant
Providers look for when proccessing the
application.
