Frequently Asked questions
Do I need a merchant account?
A merchant account offers many benefits to business owners.
Getting a merchant account can help you expand your customer base, increase
your sales, and cut-down on time-consuming tasks such as depositing cash and
checks at your bank.
How do I know what company to choose?
Processing fees and services provided vary amongst
providers. We recommend selecting a few companies and comparing their
rates and solutions. After you've narrowed it down, research your top
choice(s). It is important to ensure that the merchant account provider
you select is a reputable organization. Also, check with your local
Chamber of Commerce to see who they recommend.
It is also a good practice to determine what is important to you in regards to your merchant account. The 'cheapest' company may not always be 1) the best solution or 2) the cheapest. Often, companies with the lowest discount rate may charge additional fees or they do not have quality customer service.
It is also a good practice to determine what is important to you in regards to your merchant account. The 'cheapest' company may not always be 1) the best solution or 2) the cheapest. Often, companies with the lowest discount rate may charge additional fees or they do not have quality customer service.
Remember that the difference between a discount rate of
1.75% and 1.65% is only ten cents every one-hundred dollars processed. If
customer service is important to you, you may want to consider the minimally
higher discount rate.
Does every company have the same fees?
Fees vary for all Merchant Services Providers. What makes selecting a provider even more
confusing is that each provider has variations in the names of rates or fees
assessed. To compare each provider, it
is best to ask for a list of all possible fees that could be applicable to your
merchant account. A guideline of rates
to inquiry about is listed below. This
guideline simply lists a few of the common names associated with fees assessed
by Merchant Services Providers.
Providers may not have fees for some of the below listed and some
providers may have fees that are not listed.
Who establishes the discount rates?
The Card Brands establish the base
rates. The base rates are referred to
Interchange. Each Card Brand publishes
their Interchange Rates on their respective websites. Merchant Services Providers are all subject
to the same Interchange Rates. For
compensation for their services, MSP's mark up Interchange Rates.
Merchant Service Providers must
also allow for compensation for their Authorization Network, which connects to
all appropriate parties to provide an approval or decline response to the
merchant on behalf of the cardholder. They must also allow for compensation for the settlement and depository
services. These factors influence the
end rate offered to the merchant.
Can I go direct to Visa © or MasterCard ©?
Visa ©
and MasterCard © acceptance are offered through Acquirer's, or Registered
ISO's, of Visa © and MasterCard ©. In
order to obtain a merchant account for acceptance of these Card Brands, a
business owner must apply with an Acquirer or Registered ISO.
Some
providers advertise that they are "direct."
This is simply a way of stating that they have completed Registration
with the Card Brands. All providers are
subject to the same Interchange Buy Rates established by each Card Brand. To know if you are getting the best deal, you
should ask for a list of all possible fees that could be applicable to your
merchant account.
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