Merchant Accounts Part 2: Three Basic Elements

Nothing is more frustrating than not knowing if someone is conning you...especially in the arena of Merchant Accounts. I wanted to point out to all the members of sta.rtup some of the basic things that you would be paying if you made application for a Merchant Account. By card present, I mean the customer is standing in front of you making the purchase. I will address Websites and Mail-order in the next blog.

When a credit/debit card is swiped on a terminal the first two fees I list happens on every account.

First of all, A discount or interest fee is charged. This would look something like 1.99% or more for card present [CP]. Getting the best discount rate is paramount to keeping more of your money home. My discount rate for qualified Credit Cards is 1.69%. My special discount rate for Debit Cards is 1.39%. Beware of arbitrary rate hikes, I know a merchant [who is now my customer] that experienced a rate hike 30 days after he signed up. Some companies offer a low discount rate up front, but they conspicuously add charges somewhere in the pages of the agreement.

Sta.rtup members can be put on my VIP Listing where I would keep your rates guarded from such increases. There are industry wide increases from time to time and those are mandatory. But I can guard you from some supervisor, who has had a bad hair day, deciding to try and increase your rates.

Secondly, a transaction fee is charged. It would look something like .35 cents. My Transaction Fee is .19 cents... so you can see how much this would save you. I have seen merchants hammered with as much as .80 cents on this particular fee. That's crazy greed, and my VIP List keeps you guarded against such idiot stuff.

Thirdly, a monthly statement is charged. This typically is in the $8-$10 per month range. My monthly statement is only $5.50. There's no need to stiff good merchants who are trying to make an honest income. I could promise you my monthly statement fee would never change.

In a nutshell here are my rates for these 3 basic elements.

Credit Discount - 1.69%
Debit Discount - 1.39%
Transaction Fee - .19 cents
Monthly Statement - $5.50

So, if you want to more information, then please feel free to ask questions in your comment or contact me at life.marketing-at-yahoo.com. I spelled out -at- to frustrate email harvesters. You'll have to put the @ symbol in the address.

In the next blog I will talk about "Setting Up A Website Account."