Reducing Fees For Merchant Credit Card Services
At MBN, our goal is to provide our customers with the service they need at a low competitive rate. We listen carefully to your needs for credit card processing and make suggestions for the best options to give you the merchant credit card services you need while also saving you from spending money needlessly.
Know the Terminology
We encourage our customers to compare our service and prices to other credit card processing companies and get a good idea of the typical fees and costs associated with various companies. It is always interesting to see all the different fees, rates, and costs across the industry.
By understanding what each type of fee is with merchant credit card services we believe our customers can make a more informed, educated and cost-effective decision. To help you to get started, we would like to provide some standard types of fees you may hear about and their industry definition.
- Transaction fees – every transaction that is processed through the account, either online or swiped, will be charge a fee. This fee will be in place even if the card is declined, and it will vary between swipe and keyed entry.
- AVS (Address Verification Service Transaction) fees – charged when the card is not swiped for the sale. This can include a phone-in sale or online sales and includes the system checking the address of the registered card holder before approval.
- ACH Fees – sometimes called a daily batch fee, it is charge at the end of each day where you have at least one credit card transaction.
- Internet Gateway Fee – for online merchant credit card services the gateway provider will charge a fee over and above the credit card provider. This is often a per transaction as well as flat rate fee.
- Discount rate – this is a percentage of the transaction that is charged on each transaction. The rate will vary based on the type of transaction and will depend on the card used and how risky the sale is considered by the credit card company.
- Chargeback fee – when a customer, or a financial institute issuing the card, does a chargeback or disputes a transaction.
- Termination fee – most merchant card processors work with customers on a contract basis over a set period of time. Canceling the agreement before that date will result in a fee that will be stipulated in the agreement.
If you have any questions about fees in any of our services, please get in touch. We always work with our customers to ensure you have the card processing services you need without any surprises.