When choosing a payment processor, it's important you fully evaluate their rates. Different payment processors suit different merchants - the questions below will help you find one suited to your needs.
What are the discount rates? Discount rates are the percentage of transactions that the processor charges you in order to use their service. Rates will vary between processors and will also depend on your average or expected processing volume.
What are the transaction rates? The majority of processors will also charge a set fee for each transaction. Usually this between $0.30 and $0.50....
Read More
Observations
How Merchant Accounts Work
When it comes to accepting credit and debit cards, the process may be more involved than you might think. Rather than having the customer swipe the card and the money landing in your bank account, there is an entire process called merchant services that you need to know about. It only takes seconds for most of it, but there are still different things that happen every step of the way.
1. You receive the customer's credit card. This can be done with a physical swipe process (or by entering the number manually at the credit card terminal), or it can be entered as a card number through you...
Read More
Merchant Accounts – Considerations
Merchant account costs: When it comes to choosing a merchant account – and on a merchant account provider – one of the most important considerations is cost. Sure, cost should not be the only thing you consider when choosing a merchant account, but it is very important. After all, you are a business. The idea is to make a profit. High cost merchant accounts can result in lower profits. So cost is a factor.
Another way to look at cost is to take it beyond simple numbers. Think of cost in terms of value as well. It's not just paying the smallest amount. Really, your consideration of cost...
Read More