Undoubtedly,
the most misunderstood thing about merchant accounts is how much they
cost to set up and maintain. This is because the costs vary depending
on how much business you do in a given month...but if you can read and
do simple math, you can estimate your costs based on the
information on this page.
...So
grab a pencil and paper, and let's figure it out together!
Options
1,2 or 3
#1
E-Commerce Internet Real Time Secure Processing (no web
site needed)
#2
Credit Card Processing Software (home-based / mail or phone order business)
#3
Credit Card Machine (best for store front swiped transactions)
E-Commerce
Virtual Terminal
(Internet
Real Time Secure Processing
- Free Shopping Cart Available!)
1. Application Fee:
$0
2.
Set-Up Fee: $0
3. Monthly Bank Charges:
These
fees are charged to you by the bank. The total amount will vary on a
monthly basis, depending on how much business you do:
-
Visa/MasterCard Discount Rate: As low as 2.10% (AMEX & Discover
have their own rates)
Per transaction fee: $0.25
-
Statement/Maintenance fee: As low as $8.00
-
Minimum processing fee: As low as $10.00 (waived
with some programs)
Gateway
fee: $15.00
In
short, the "Statement/Maintenance fee" is a flat fee of $8 a
month. The "Per transaction fee" will start at $0.25 for every
transaction processed. The "Visa/MasterCard
Discount Rate" is a percentage of your total monthly transactions. The
Gateway fee is $15.00 This is a hosting fee for the real-time
secure transaction. You must link to the real-time secure server
and our AVS system for real-time verification and approval.
The "Minimum processing fee" is the most confusing of the
fees, but (at worst) it is a $10 monthly fee that you won't have to pay
if you do enough transactions. In some cases
this is waived.
Example
1 -
Let's say in one month, "Company X" had 100
transactions. If each transaction was for $100, Company X's
total revenue for the month would be $10,000. The bank would charge Company
X....
$210.00
= 2.10% (Visa/MasterCard Discount Rate) X $10,000 (the gross income that
month)
$25.00
= $0.25 (Per transaction fee) X 100 (transactions)
$8.00
= Statement/Maintenance fee
$15.00
= Gateway fee
$0
= Minimum processing fee... because Company "X" met the minimum
_______
$258.00
= total fee charged by the bank for that month.
Obviously
this Ecommerce business is very successful and relies on accepting credit cards!
Example
2 -
"Company Y" is another company, and let's say
they had a terrible month. In fact, they didn't get one sale.
Unfortunately, the bank will still charge Company Y $33.
Let's see why...
$0
= the 2.10% (Visa/MasterCard Discount Rate) on the $0
$0
= $0.25 (Per transaction fee) X 0 (transactions)
$8.00
= Statement/Maintenance fee
$15.00
= Gateway fee
$10.00
= the full Minimum processing fee... because Company Y
didn't meet the minimum processing fee
_______
$33.00
= total fee charged by the bank
4.
Leasing Down Payment: $0
Total Cost for
E-Commerce start up: $0
And
a low monthly lease payment of only $24.95 for 30 months
(Most companies are 48 months)
Call
1-877-877-9592 for Special Purchase Pricing
Credit
Card Processing Software
(Home
Based or Mail Order Telephone Order)
1. Application Fee:
$0
2.
Set-Up Fee: $0
3. Monthly Bank Charges:
These
fees are charged to you by the bank. The total amount will vary on a
monthly basis, depending on how much business you do:
-
Visa/MasterCard Discount Rate: As low as 2.10% (AMEX & Discover
have their own rates)
Per transaction fee: $0.25
-
Statement/Maintenance fee: As low as $8.00
-
Minimum processing fee: $10.00
In
short, the "Statement/Maintenance fee" is a flat fee of $8 a
month.
The "Per transaction
fee" will start at $0.25 for every transaction processed. The "Visa/MasterCard
Discount Rate" is a percentage of your total monthly transactions.
The "Minimum processing fee" is the most confusing of the
fees, but (at worst) it is a $10 monthly fee that you won't have
to pay if you do enough transactions. In some
cases this is waived.
Example 1 -
Let's say in one month, "Company X" using
Ecommerce Software, had 10
transactions. If each transaction was for $100, Company X's
total revenue for the month would be $1,000. The bank would charge Company
X....
$21.00 = 2.10% (Visa/MasterCard
Discount Rate) X $1,000 (the gross income that month)
$2.50 = $0.25 (Per transaction
fee) X 10 (transactions)
$8.00 = Statement/Maintenance
fee
$0 = Minimum processing fee...
because Company "X" met the minimum
_______
$31.50 = total fee charged by
the bank for that month.
Not bad
for a Home Based business that is still in it’s first year.
Example
2 -
"Company Y" is another company using
Ecommerce Software, and let's say
they had a terrible month. In fact, they didn't get one sale.
Unfortunately, the bank will still charge Company Y $18.
Let's see why...
$0 = the
2.10% (Visa/MasterCard Discount Rate) on the $0
$0 = $0.25
(Per transaction fee) X 0 (transactions)
$8.00 =
Statement/Maintenance fee
$10.00 = the
full Minimum processing fee... because Company Y didn't
meet the minimum processing fee
_______
$18.00 =
total fee charged by the bank
4.
Leasing Down Payment: $0
Total Cost for
Software start up: $0
And
a low monthly lease payment of only $24.95 for 30 months
( Most companies are 48 months)
Call
1-877-877-9592 for Special Purchase Pricing
