Your merchant account provider will charge you a variety of fees.  Since some fees are charged on a % basis, some on a per-transaction basis, some on a per-month basis and some on a per-year basis it can be difficult to compare the price of one merchant account provider to that of another.  One of the main ways that merchants get a bad deal is that they don’t notice a “tiny” fee in the small print of their contract that adds up to be big.

Explaining the Fees:

 

Fee  Explanation  Good deal
Per-item fee / transaction fee Charged for each transaction. Interchange rates (what your merchant account provider gets charged by Visa / Mastercard) include $0.10 / transaction.  Anything above that amount is profit to your merchant account provider.  $0.10-$0.15
Statement Fee Your merchant account provider will charge you to provide you with a statement each month.  Note – you can’t opt out of this.  $5-10
Online access fees  Many merchants like to be able to see their processing information online, which is convenient because you can get past month’s statements, see summaries of your charges on a daily basis (i.e. see how much money is coming to you), etc. Most Merchant Account Providers offer this service, but most also charge an extra fee.  Many times online statements are a default, even for merchants that may not want to look at their statements online.  If you don’t want online statement access, tell your Merchant Account Provider to turn it off and stop billing you.

 

Usually the statements are actually generated by the processor that does the backend work for your Merchant Account Provider (only a minority of Merchant Account Providers do their own processing) and this fee is usually a fee that your Merchant Account Provider is charged by the processor and then passed on to you the merchant.  It typically costs $5.00 – $10.00.

 $0.00 – $5.00
 Batch Header Fee  Each day the merchant sends a “batch” which is a complete record of that day’s charges, to their Merchant Account Provider.  Basically the Batch Header Fee is just a “Daily fee”, you can’t get rid of it and paying it doesn’t get you anything extra. Typically the Batch Header Fee is $0.25 – $1.00 (x 30 days = $7-$30 / month).  $0.00 – $0.25

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