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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.