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If you're just starting a new business you probably already know that you'll need to get a merchant account. But do you know what to look for when you are comparing different companies? In this article we'll take a look at a few different merchant account fees you'll see so you can make a fair comparison.
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!
Transaction Fees: This one is a given - all merchant account companies will charge a little bit for every transaction you process through your account. This is usually broken up into two parts. The first part is a flat rate, usually anywhere from $0.20 to $0.40. The second is a percentage, which can range anywhere from 1.55% to 5.0%. This rate is usually negotiable depending on how much you process each month.
Monthly or Statement Fees: Almost every merchant account company I've seen will charge a monthly or statement fee. These fees also range all over the place. I've seen them range from $10 to $40 depending on the company. You may also find some companies that charge a yearly fee instead, but they usually increase their per transaction fees instead.
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.
There are usually other fees that you'll run into from time to time, but if you use these fees as a baseline to do your comparisons you should be able to find a really good deal on your next merchant account.
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!
Transaction Fees: This one is a given - all merchant account companies will charge a little bit for every transaction you process through your account. This is usually broken up into two parts. The first part is a flat rate, usually anywhere from $0.20 to $0.40. The second is a percentage, which can range anywhere from 1.55% to 5.0%. This rate is usually negotiable depending on how much you process each month.
Monthly or Statement Fees: Almost every merchant account company I've seen will charge a monthly or statement fee. These fees also range all over the place. I've seen them range from $10 to $40 depending on the company. You may also find some companies that charge a yearly fee instead, but they usually increase their per transaction fees instead.
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.
There are usually other fees that you'll run into from time to time, but if you use these fees as a baseline to do your comparisons you should be able to find a really good deal on your next merchant account.
About the Author:
If you already have a merchant account, chances are you can get lower merchant account fees by having a good company look over your current account. Contact someone today about getting better rates!
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