Choosing An Internet Merchant Account - The Diigo Meta page

• 07 Sep 08
  

  Joel Liu

  payment merchant account fee cost

  • Let
    us discuss each type of cost:

    
    

    Up
    Front Application Fees

    
    

    Many
    internet merchant accounts will require an up front application fee. This
    fee, supposedly, is to cover their costs for processing your application.
    In case you choose not to open an internet merchant account, they still
    cover their initial costs. Although common, many providers waive these
    fees and I recommend that you choose a provider that does not require
    an up front fee.

    
    

    On
    Going Fixed Fee

    
    

    Most
    all internet merchant providers require a monthly fixed fee or "statement
    fee" as it is commonly named, which is simply another way to cover
    their costs and make money. You will be hard pressed to find a provider
    that does not require this type of fee on a monthly basis. However, do
    not choose an internet merchant account that requires more than $10 per
    month. Additionally, most internet merchant providers require a monthly
    minimum (usually $25). The bottom line is that you will be paying at least
    $25 per month (on top of the monthly statement fee) for your account.

    
    

    Discount
    Rate

    
    

    Usually,
    the discount rate will be between 2 and 4 percent. The discount rate is
    the sales commission the provider earns on each sale. For example, if
    the discount rate offered is 3%, and you receive a sale over your web
    site for $20, you will owe 60 cents to your internet merchant provider.
    

  • Fixed
    Transaction Fee

    
    

    Usually
    between $0.20 and $0.30, the fixed transaction fee is the fixed fee portion
    of each sale. Unlike the discount rate, the fixed transaction fee is the
    same for every transaction. Whether you get a $1 sale or a $100 sale,
    the transaction fee will be the same.

    
    

    Termination
    Fee

    
    

    A
    bit more hidden in the small print, a termination fee can apply if you
    cancel your merchant account within a specified period of time (usually
    within one year). But beware, some merchant providers require a three
    year commitment!

    
    

    Miscellaneous
    Fees

    
    

    If
    a customer requests a refund and they want their credit card credited,
    an internet merchant provider will charge you a separate fee (usually
    between $10 - $20). Read the contract carefully, as other special fees
    may apply.

• 07 Feb 08
  

  xarjxarj

  account del.icio.us imported internet merchant

• 19 Nov 07
  

  infomason20
• 07 Sep 07
  

  Garrett Pendergraft

  account ecommerce internet merchant

  • Fraud protection should be one
    of your primary considerations when choosing an internet merchant account
    provider
  • choose a provider that does not require
    an up front fee
  • 4 more annotations...
  • • do
      not choose an internet merchant account that requires more than $10 per
      month
    • you will be paying at least
      $25 per month (on top of the monthly statement fee) for your account
    • some merchant providers require a three
      year commitment
    • Total
      Charges = Statement Fee + Number of Transactions x (Average Sale x Discount
      Rate + Fixed Transaction Fee) + (Number of Chargebacks x Chargeback Fee)
• 18 Sep 06
  

  Stephane JAIS

  e-commerce ima imported:del.icio.us online-payments

Would you like to comment?

Join Diigo for a free account, or sign in if you are already a member.