Different Merchant Account Fees You Should Know About

Before selecting a merchant account service provider, you need to know about the different fees that are generally applicable. The information should help you plan your budget well or you may end up counting the money you will actually have to pay to a payment processor! 

·         Initial fee is the most common type of one-time fee that a service provider will ask. Payment processor might quote it as a setup fee or an application fee. Basically, this is the fee which service providers charge to get started with a low or high risk merchant account. 

   

·         A service provider can also ask for a monthly fee; it is often christened as a statement fee or report fee. This fee is charged to keep the account available.

·         Discount fee is one common percentage that service providers charge on the transactions. However, the percentage can be a function of the type of credit cards used or the method of payment processing.

Transaction fee is charged during card swipes as cushion (for fraud transactions and different risks involved in high risk payment transactions through high risk merchant accounts).