Credit Card Processing: Comparing Services and Fees

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<h1>Credit Card Processing: Comparing Services and Fees</h1><strong> Author: <a href='http://www.articleseen.com/profile_Karen Zabel.aspx'>Karen Zabel</a></strong><br /><p>So you’ve finally realized the benefits your business can experience by opening a merchant account. Now begins the search for the merchant account provider that’s an ideal match for your business’ needs. During your search, you’ll be comparing fees and services to make sure the provider you ultimately select will be able to serve your needs and help your business grow to new heights. The first step in finding the best merchant account for your needs begins right where you are now: in front of the computer. The Internet is a great place to begin your search. In addition to individual account provider’s websites, there are sites devoted to discussing account providers, including forums devoted to recounting the experiences of current and past accountholders. Most business owners begin their search with a comparison of the fees charged by different account providers. These are just a few of the fees you may encounter during your comparison: •Application fee/account setup fee. As the name implies, this fee is assessed for administrative costs associated with processing your application and establishing your account with the service provider. Some providers charge an account setup fee at the beginning of service, while others may incorporate it into their monthly charge. And some account providers have done away entirely with this fee. •Equipment leasing. Depending upon the provider you select, you may have an option to either lease or purchase your equipment. In most cases, purchasing equipment is the better option, financially speaking. In addition, you may encounter a fee for software. • Annual fees. This fee is assessed each year to keep the account open and active. Many merchant account service providers no longer charge annual fees. • Transaction fees. These fees are charged on each transaction as it’s processed, and can also vary by the type of account you use. • Discount fees. The discount fee (sometimes called the discount rate) is a fee charged on each transaction that covers the cost of processing the transaction. The discount fee is usually expressed as a percentage of the transaction amount, and will vary based on the type of account you have. •Gateway fees. If you intend to accept credit cards for goods and services sold online, you’ll need to establish an account with a gateway service provider. The gateway will help ensure credit card charges are verified and processed smoothly. These fees are usually assessed each month. •Address verification system (AVS) fees. When a credit card is used for any purchase, your merchant account may use an AVS system to ensure the address given during the purchase matches the address associated with the account. Some merchant providers offer this service at no cost, while others charge a fee. •Minimum account fees. Most merchant account providers base their fees on a minimum amount of transactions being processed each month. When a business does not process the minimum number of transactions, the account provider may charge a fee to make up the difference. •Statement fees. Just like your regular bank account, your merchant account will provide a monthly statement listing all transactions that were processed, as well as all fees that were assessed. Some merchant account providers charge a fee for preparing and issuing the monthly statement. •Daily closeout fees. When business concludes for the day, your merchant account “closes out” your account for the day, tallying all charges and deducting any fees, then transferring the remaining balance to your business account. Most accounts charge a fee for processing associated with closing out the account each day. When comparing merchant account providers, you may also encounter additional fees. Be sure to understand these fees thoroughly so you can compare accounts effectively. In addition to comparing accounts, you’ll also want to compare the services offered by account providers. Most merchant account providers offer a broad range of services to suit most business types. However, it’s a good idea when comparing account providers to select a provider that has expertise in the type of business you operate, as well as the method in which you want to conduct business (retail, online, mail order, telephone, or mobile). It’s also a good idea to look for merchant account service providers with extensive experience in serving small businesses and their needs, rather than providers that deal primarily with large corporations. Merchant account providers with experience in small business needs can help ensure you take advantage of all of the services your business needs to grow and expand, and are experts at identifying opportunities that can help your each your goals sooner. Establishing a merchant account is easier than ever. With fewer fees and a simpler application process, there’s no reason to put off taking a step that can help you keep your business competitive in every economy.</p><strong>About the Author:</strong><br />Karen Zabel is a freelance writer who writes about business and <a rel="nofollow" href="http://www.nabancard.com"> merchant credit card processing services </a>.<p> Article Source: <a href='http://www.articleseen.com/Article_Credit-Card-Processing-Comparing-Services-and-Fees_12910.aspx'> http://www.articleseen.com/Article_Credit Card Processing: Comparing Services and Fees_12910.aspx</a></p>

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Keywords : merchant credit card processing services, merchant credit card processing, credit card processing, credit card, merchant,

Category : Business : Business