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Frequently Asked Questions (FAQs)

Merchant Account Setup

What specific rates and fees will I pay for accepting credit card payments?
Merchant account fees usually range from 2.00% to 3.50% of your monthly credit card volume. The specific charges vary based on the type of business you are and how you accept payments from your customers.

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?
The approval process typically takes about 24 hours. After your account is approved you are then ready to program terminals or POS equipment.

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?
The information provided can vary slightly between providers but here are the main items that will be requested of you at the time of application:

Application items

  • 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?
Merchant accounts are not widely thought of a loans or lines of credit but that is technically what they are. For this reason, the processing company takes on risk of collecting funds that they pay out.

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?
You will get a monthly bill that is charged within the first couple of days of the month for the previous monthly processing volume.

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 are not required to have two merchant accounts if you don’t want to as long as it’s the same business selling the same products.

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.

Are You Ready to Get Started?

There are lots of options when it comes to setting up a merchant account or payment processing system so if you’d like to talk with one of our specialists about your needs, click below to do so.

Get in touch

1075 Broad Ripple Ave
Suite 340
Indianapolis, IN 46220