Affordable Merchant Account – Review Credit Card Processing Options Carefully!
Written By: Andy Lax – http://intelli-collect.com
In these recessionary times, savvy business owners are always looking for bargains and
for those who need credit card processing options, an affordable merchant account
may be the holy grail to lower operational expenses. But with hundreds, if not
thousands of merchant account providers to choose from, how can one find these
affordable merchant accounts when all are proclaiming to offer the best rates?
In order to find a credit card processor that does not break the bank, keep the following
questions in mind:
What are the TOTAL fixed costs? - This question is particularly pertinent when
opening an online / Internet merchant account. For example, Company A quotes a total
monthly fee of $15 where Company B asserts that their monthly service fee is $5.
While it appears that Company B is offering the better deal, they neglected to mention
that their payment gateway is also $15. (The gateway is the mechanism that one needs
to integrate with the website's shopping cart or order page to facilitate the transfer of
funds between customer and merchant.) Thus, the TOTAL monthly fee of Company B
is the following: $5 + $15 = $20 – higher than Company A's price per month.
What are the credit card processing discount rates and transaction fees? - Notice
that I mentioned “discount rates” and “transaction fees” in the plural form rather than in
singular designation. Many self-proclaimed affordable merchant account providers
will only quote their qualified discount rate and transaction fee.
Consider the scenario where Company A and Company B are again vying for a
prospective client's account. Company A quotes the qualified, mid-qualified, and non-
qualified pricing structure – all applicable for this retail merchant. (Please access this
blog entry for further information on these tiered rates.) Company B only