Monday, June 18, 2007

How To Find the Best Merchant Account For Your Business

What a great idea! Start accepting credit cards and watch your profits soar. Nothing could be simpler. Or so you thought until you began researching merchant accounts. It can all get extremely confusing. There is an easy way to find the best deal that suits your business. You'll be able to compare apples to apples and have a clear picture of what the merchant account will cost you.


Let's take a look at some of the phrases you'll encounter (in layman's terms) when you begin to search for a merchant account.


--- Merchant Account Provider - The company who arranges for your payment hardware or software and your ability to accept credit cards.


--- Nova - The company who processes the credit card transactions and forwards them to the appropriate credit card company for payment (Visa, MasterCard, American Express, etc.)


--- Set Up Fee - The one-time amount the merchant account provider charges to set up your company in their system. For this example, we'll use a set up fee of $65.00.


--- Discount Fee -One amount (there are others) that Nova and the merchant account provider deduct from each sale as a portion of their payment for your merchant account. We'll use a discount fee of 2.25%.


--- Per Transaction Fee - This is a second amount that the two companies subtract from each transaction as a portion of their payment. For our example, we'll pick a per transaction fee of $.35.


--- Terminal or Gateway Fee - Whether you have a real terminal or a virtual gateway via the Internet, you will be assessed monthly charges to cover the use of that service. Let's say $10.00 for our example.


--- Statement Fee - The fee for your merchant account provider to send an itemized statement each month. An average amount we can use is $15.00.


--- Annual Fee - An annual fee just for having your merchant account. For the annual fee example, we'll choose $35.00.


I know what you're thinking! But don't give up before you start. Remember, I'm going to show you a way to decipher all this information.


Choose a number -- any number. This will be the total number of transactions you think you might conduct during the course of a year. For our example, we'll use 100. Next, choose an average transaction amount for your product or services. We'll say $175.00 for now. Finally, we'll calculate a year's worth of charges by using the amounts above and within the definitions.


Set Rate Charges:


Set up Fee = $65.00 (one time only)


Gateway Fee = $10.00/mth


Statement Fee = $15.00/mth


Annual Fee = $25.00/yr


Then multiply your estimated number of transactions by the $ .35 per transaction fee. That equals $35.00. Next, multiply the average transaction amount ($175) by the discount rate of 2.25%. That equals $3.94. You've estimated that you'll have 100 transactions per year, so again, multiply the $3.94 by the 100 transactions. The total equals $394.00. All that is left is to add them all up.


Set up Fee = $65.00 (one time only)


Gateway Fee = $10.00 x 12 months = $120.00/yr


Statement Fee = $15.00 x 12 months = $180.00/yr


Annual Fee = $25.00/yr


Per Transaction Fees = $35.00/yr


Discount Rate Fees = $394.00/yr


Total Fees & Charges For One Year = $819.00


Let's look at one other quick example just to show you that looks can be deceiving.


This company offers the following rates:


Set up Fee = FREE


Gateway Fee = $15.00/mth


Statement Fee = $10.00/mth


Annual Fee = FREE


Per Transaction Fees $ .30


Discount Rate Fees = 2.35%


Software Lease = $24.95/mth


Based on our same $175 average transaction and 100 transactions per year, we come out with the following figures:


Set up Fee = FREE


Gateway Fee = $15.00 x 12 = $180.00


Statement Fee = $10.00 x 12 = $120.00


Annual Fee = FREE


Per Transaction Fees (100 transactions x $ .30 = $30.00)


Discount Rate Fees = $175 avg. transaction x 2.35% = $4.11 x 100

transactions = $411.00)

Software Lease = $24.95 x 12 = $299.40


(an additional fee our first provider didn't charge)


Total Fees & Charges For One Year = $1040.40.


Even with free set up and no annual fee, this company still charges over $200 per year more than the first merchant account provider we previewed. Be very careful - the word "free" can often times be deceiving.


Merchant accounts can open a world of new business for your company. They can provide a very convenient way for your clients to pay - and for YOU to get your money. However, when you shop for a merchant account, be sure to use a standard unit of measure like we've outlined above to be very sure that you are getting the deal best suited for your company.

24 comments:

Anonymous said...

buy best [URL=http://jacket-dresses.net/]moncler outlet[/URL] , for special offer rOUFtFQf [URL=http://jacket-dresses.net/ ] http://jacket-dresses.net/ [/URL]

Anonymous said...

best for you [URL=http://jacket-dresses.net/]moncler down jackets[/URL] to get new coupon LKSNUWRe [URL=http://jacket-dresses.net/ ] http://jacket-dresses.net/ [/URL]

Anonymous said...

get cheap WbXLrLrQ [URL=http://www.prada-outlet2013.net/]prada replica[/URL] suprisely yfXeYALY [URL=http://www.prada-outlet2013.net/ ] http://www.prada-outlet2013.net/ [/URL]

Anonymous said...

click vagVEYAo [URL=http://www.chanel--online-shop.net/]chanel bags outlet[/URL] for promotion code FldCbdXr [URL=http://www.chanel--online-shop.net/ ] http://www.chanel--online-shop.net/ [/URL]

Anonymous said...

buy NYkPATGv [URL=http://www.louis--vuitton--online--shop.net/]cheap louis vuitton handbags[/URL] for more lKflrtcy [URL=http://www.louis--vuitton--online--shop.net/ ] http://www.louis--vuitton--online--shop.net/ [/URL]

Anonymous said...

you love this? XEVfeXTk [URL=http://www.prada-outlet2013.net/]prada handbags outlet[/URL] to take huge discount cICfVZHF [URL=http://www.prada-outlet2013.net/ ] http://www.prada-outlet2013.net/ [/URL]

Anonymous said...

check NHEpsusf [URL=http://www.uggs-outlet2013.com/]uggs outlet sale[/URL] with low price LUNDxqhP [URL=http://www.uggs-outlet2013.com/ ] http://www.uggs-outlet2013.com/ [/URL]

Anonymous said...

buy bGrKmWJf [URL=http://www.prada-outlet2013.net/]prada outlet[/URL] to get new coupon lNvAoAIj [URL=http://www.prada-outlet2013.net/ ] http://www.prada-outlet2013.net/ [/URL]

Anonymous said...

buy rsIfuIOl [URL=http://www.burberry-outlet2013.com/]burberry quilted jacket[/URL] online shopping aAGRbUfr [URL=http://www.burberry-outlet2013.com/ ] http://www.burberry-outlet2013.com/ [/URL]

Anonymous said...

click to view oslxdnqw [URL=http://www.gucci-outlet2013.net/ - gucci online[/URL - online kygASmcr [URL=http://www.gucci-outlet2013.net/ - http://www.gucci-outlet2013.net/ [/URL -

Anonymous said...

check this link, dChqgokP [URL=http://www.louis-vuitton-outlet2013.com/]louis vuitton fake[/URL] , just clicks away RXBAkNDk [URL=http://www.louis-vuitton-outlet2013.com/ ] http://www.louis-vuitton-outlet2013.com/ [/URL]

Anonymous said...

you love this? FGAJrTzF [URL=http://www.moncler-outlet2013.org/ - moncler down jacket[/URL - to your friends anUoUJzu [URL=http://www.moncler-outlet2013.org/ - http://www.moncler-outlet2013.org/ [/URL -

Anonymous said...

I'm sure the best for you VgfIIgvj [URL=http://www.moncler-outlet2013.org/]moncler outlet store[/URL] to your friends yLmmQmpk [URL=http://www.moncler-outlet2013.org/ ] http://www.moncler-outlet2013.org/ [/URL]

Anonymous said...

buy best rwWmTmWa [URL=]gucci replica[/URL] with confident vMMkeFkX [URL= ] [/URL]

Anonymous said...

ghd hair straightener mgclkffg ghd australia mwzachxt ghd hair straighteners xuiegstw

Anonymous said...

Longchamp iutckehl Longchamp Pas Cher admotspd Sac Longchamp dxpssjjk Longchamp Soldes hoegnlqy Longchamps lfazebah

Anonymous said...

hollister france emzoqosy hollister lyon qeepfcvj hollister paris ifjgzvby hollister pas cher dvwgygsg hollister soldes vayjuqgk hollister xliejrda

Anonymous said...

to buy kAfrSCIj [URL=http://www.chanel--replica.tumblr.com/]chanel online store[/URL] online paNDBCnR [URL=http://www.chanel--replica.tumblr.com/ ] http://www.chanel--replica.tumblr.com/ [/URL]

Anonymous said...

must look at this BCFGsPCn [URL=http://www.chanel--replica.tumblr.com/ - chanel bags outlet[/URL - online SfJDCUJg [URL=http://www.chanel--replica.tumblr.com/ - http://www.chanel--replica.tumblr.com/ [/URL -

Anonymous said...

you must read cceSHnOR [URL=http://www.gucci-onlinestore.tumblr.com/]gucci online[/URL] , just clicks away VrFBOyxG [URL=http://www.gucci-onlinestore.tumblr.com/ ] http://www.gucci-onlinestore.tumblr.com/ [/URL]

Anonymous said...

I was curiоus if уou eveг considered changing the ѕtructure of уοur site?
Its very ωеll written; I lοve what
youνe got to say. Βut maybe yοu cοulԁ а lіttle moгe in the way of content so people сοuld connect with it bettеr.

Youve gоt an awful lot оf text fοг only hаνing onе or two images.
Mауbe you could spaсe it out bеtter?


mу ѕіte :: 888 Poker Bonus

Anonymous said...

Үou ѕimply need tο determinе if іt is serіouѕlу ωoгth the hassle.
Stаrting yοur day by clearing оut уour inbox, voiсemail іnbox,
anԁ e-mail inbοx is just ρlaіn
ԁumb. Αt $20 it is a really superdeаl
anԁ сomes in a ton of shades.

Feel freе tο surf to my blog poѕt ::
http://wiki.acerenza.info/index.php/Discussioni_utente:VickeyRoa

Anonymous said...

We deсidеd not to gо in on the deal
with Global Тravel Νеtwork.
Τаrget, Ѕears and Kmаrt have onlіne deаls staгting Thаnkѕgiving
dаy, though thеу are reѕerνіng the biggеst
discountѕ for in-store shoрpers. Do not giνe еven a penny
of thаt hard earneԁ money аωaу on ѕomеοne elsе's rummage items, because you have a goal' tο maκе mоneу.


Сheck out mу blog; superdeal

Anonymous said...

Be Riсh is pretty sіmiliaг to Build-A-Lot;
aсtually іt's a good practice game since the difficulty level is lower. Hey since you lost that expense account, looks like we are meeting at Mc - Donald's fοr lunch.

If any repairs аre madе аs а reѕult of an inspеctіon, I will
aѕk foг the credentialѕ of the persοn ԁoing the work.


Look into my homepage ... home sweet home