What is a Merchant Account?

Business owners who receive credit card payment for their goods or services, must apply for Merchant Accounts typically through a Bank or a ISO organization.

Rates & fees are determined by:

1. Your businesses average ticket price (average sale amount per customer/client).

2. Your businesses annual business volume.

3. Is cards "present" for the payment transaction.

4. How soon the client/customer receives the product/service after the payment is made.

5. Personal credit on the business owner.

Owners who own businesses with poor or no credit may find it difficult to establish an Card Processing through traditional routes. Owners with poor credit or no credit history can usually still be approved on the debit processing, just not the credit processing. The only other option for owners with poor credit, would be Third Party Payment Processing which can be costly.

Credit card processing accounts are not free - a variety of charges are involved. Some fees are charged on a monthly basis but most are charged on a per-item or percentage basis.

All of the monthly fees are at the discretion of the Payment Processing Provider but the majority of the per-item and percentage fees are passed through to the issuing Bank according to a schedule of rates called Interchange Fees, which are set by Visa Card and Master Card.

Fees and costs associated with payment processing services are somewhat negotiable.