Compare Merchant Account Fees for the Best Deal
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by: ScottJohannson
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Word Count: 346
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: Setup fees will vary a lot from company to company. Some have a realistic fee, and others charge crazy amounts for this step. Make note of what they will charge to get started so you aren't surprised by a $500 fee. You can find companies that charge a lot less than that!
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 Fees: This is another common thing that you'll see, and like the other fees this one tends to range all over the place. I've seen some companies charge as much as $40, and I've seen some charge only $10 a month. Some companies don't charge monthly but instead charge yearly, so that's another thing to watch for.
Processing Limits: Another problem you run into from time to time is a low processing limit. If you have a limit on your account and need to process more in a given month you'll usually have to renegotiate with the merchant company. Look for companies that either just grow with you or have a realistic limit that you can work with.
So there you have it. These are some of the main fees you'll see. There are others as well, so take everything into consideration when doing your comparisons. If you pay attention to these different merchant account fees as you're comparing companies you'll be able to get the best deal.
About the Author
If it's been awhile since you've had someone look over your merchant account rates, it's time to have a professional company do it. There are plenty of companies out there, so chances are you could be spending less in fees!
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