Frequently Asked Questions (FAQs)
Merchant Account Setup
What specific rates and fees will I pay for accepting credit card payments?
Merchant account pricing is not a “one size fits all” pricing model so rates can vary from company to company.
What factors determine how much I pay in merchant account fees?
A single interchange rate is paid every time a transaction is made whether it’s Visa, Mastercard, or Discover or American Express
Some rates are lower than others because, for example, they are determined to be less of a risk to the card issuing bank and less likely to have chargebacks occur.
Some other of the most notable factors that determine the exact cost of each interchange rate category are:
- The type of business / Merchant SIC code
- How the payment is accepted (face-to-face or via the internet)
- Cost of the sale (average ticket or purchasing card)
- The type of credit card (business corporate card, vs. individual card)
- Processing technology (interchange optimization for IP “high speed” connection)
- Daily settlement
So when a card is presented at the point of sale, it falls into ONE of the interchange categories based on these qualifying factors.
How Do I Establish A Merchant Account?
Each provider will have different requirements for applying for a merchant account, but all will have an application that must be filled out.
The application process takes about 15 minutes & all your information is gathered either by phone or an online web application. There are minimal documents that you need to provide in most cases.
If you’re ready to set up a merchant account, click here to schedule a Free strategy session.
Rates, Fees and Pricing
How Long Does Approval Take?
If you are reprogramming existing equipment (vs. buying new) your provider will give you the instructions on how to do that.
What information do I have to provide to get approved for a merchant account?
- Company name, address and contact information
- Ownership information including social security number and percentage ownership
- Tax Identification Number
- Bank account information
Documents you will provide
- Photocopy of your drivers license or ID card
- Photocopy of a blank check for merchant account debits and credits
Why is credit review part of the merchant account approval process?
When a transaction takes place, the cardholder is charged and the merchant account provider pays you for the sale. The cardholder has up to 90 days to dispute the transaction for any reason and when this happens the chargeback process starts.
If the chargeback is found in favor of the customer, the funds are automatically debited from your bank account and paid back to the cardholder. The merchant account provider wants to make sure that each business they approve is financially sound and credit is a part of that equation.
Types of Merchant Accounts
How often and how am I charged for merchant account fees?
Each day you process transactions your merchant account provider keeps track of the total fees and adds them up for the total bill at the end of the month. Some providers charge fees on a daily basis based on risk of the merchant account.
If I have a retail shop and I sell online, will I need 2 merchant accounts?
You will only need to open a different merchant account if you are selling different goods/services or you want money to be deposited into a different bank account.