When comparing merchant account providers it is important to know what fees they charge…here is a list of common merchant account fees.
*Note: PaymentMax does not charge all of these fees. This is strictly for informational purposes.
This fee can occur when there are changes to be made to an existing account. For example, changing a business name or bank account on the account.
- ACH reject (or return) Fee
If there are insufficient funds in a merchant’s bank account when the processor performs an electronic ACH (automated clearing house) request, the merchant’s bank will reject the ACH request and the processor will charge an ACH reject fee.
A flat rate charged to a merchant account once a year.
A flat rate charged when applying for a new merchant account.
A fee charged when the credit card processing equipment obtains an authorization for a transaction (authorization code).
- Address Verification Service (AVS) Fee
This is the fee charged for using the AVS service. AVS allows the merchant to enter in the billing address of the cardholder to be compared to the billing address on file at the issuing bank. An address match significantly reduces the risk of the transaction.
A batch header fee is charged when the merchant batches out their authorized credit card transactions, usually at the end of the business day.
The fee charged by a processor for cancelling an existing merchant account.
The fee for a chargeback request made by a customer. The chargeback fee is charged whether the chargeback is won or not.
The monthly charge for having access to the various debit networks.
The discount rate is usually the predominate cost of processing credit cards. It is equal to the percent a merchant will pay on each transaction. There are 3 categories associated with the discount rate: Qualified-rate, mid-qualified rate, and non-qualified rate.
The fee charged for having access to the online payment processing gateway. The gateway fee is charged once a month. Also called Internet gateway fee.
The help desk fee is charged when a merchant calls the help desk for assistance on their merchant account.
Providers establish a monthly minimum requirement on processing. For example $25. If the merchant account processing fees are less than $25, a monthly minimum fee will be charged to make up the difference.
The fee charged for going over the monthly processing volume declared in the merchant account agreement. The fee is expressed as a percentage of sales, and applies to the amount over the monthly processing volume declaration.
The fee charged when the customer enters their personal identification number into an encrypted pin pad peripheral at the point of sale.
The fee charged by merchant account providers for reprogramming all equipment (terminals, gateway, software) to be compatible with their system.
The retrieval fee is charged when the merchant returns supporting documentation on a transaction that is under chargeback review.
A flat fee that is incurred when a customer’s has a transaction reversed and funds are returned to their account.
The fee a merchant account provider will charge on a new, approved account to complete the account set-up.
The fee a merchant pays when a customer uses their Visa/Mastercard Debit card (check card) as a credit card. Instead of entering their PIN number into an encrypted pin pad, the card is swiped into a credit card terminal.
A flat fee that is incurred once a month for the merchant account billing process (production and mailing of statements). This is often waived if a merchant agrees to viewing statements electronically.
The transaction fee is the incurred every time a merchant’s credit card processing equipment contacts a processor for information.
The fee incurred for obtaining a verbal voice authorization on a pending transaction.
For more information about merchant accounts, or next day funding visit www.paymentmax.com