Internet Merchant Bank Account Fees: An Overview

To say the Internet is the new marketplace is an understatement. More accurately, it is the new global marketplace—a place that any merchant can be a part of with the help of an independent selling organization (ISO). The accounts provided by ISOs are bank accounts that allow merchants to accept and process debit, credit, and check payments, whether in store, on the go, or online. For many businesses, an online account is the most lucrative, as it reaches customers globally. Nevertheless, like all merchant accounts, an online account involves fees; seven of those fees are profiled below.

Gateway fee

A merchant pays monthly for using a virtual payment gateway. Some ISOs provide their own gateways, but most use gateway providers. This makes a gateway fee higher than most monthly fees. A gateway fee starting at less than thirty-five dollars is currently considered favorable.

Discount rate

A discount rate is a percentage of each sale that satisfies a collection of charges, fees, and dues that come with accepting credit card payment. Discount rates vary by account type. A discount rate of less than three percent is currently considered favorable for an Internet merchant bank account.

Transaction fee

A transaction fee is a flat amount charged for each sales transaction. It is assessed when a transaction is sent to a merchant’s processing bank for approval, whether the transaction is approved, or not. A transaction fee starting at less than thirty cents is currently considered favorable.

Statement fee

A statement fee is paid monthly for the preparation of a monthly statement that shows what processing occurred in the previous month, and the resulting fees. Statement fees exist for both paper and paperless statements. A statement fee of less than fifteen dollars is currently considered favorable.

Monthly minimum fee

A monthly minimum fee is assessed when a merchant fails to incur a certain amount of fees in one month. The difference between the fees accrued and the amount required is the monthly minimum payment. A monthly minimum of less than ten dollars is currently considered favorable for an Internet merchant bank account.

Batch fee

A batch fee is assessed when a merchant settles their terminal at the end of each day, sending the transactions to its processing bank for payment. It can vary significantly depending on the bank, but is seldom more than fifty cents each time transactions are “batched.”

Early termination fee

An early termination fee is assessed when a merchant cancels its account before the contract expires. It could be the combined value of all statement, monthly minimum, and gateway fees left in the contract period, plus a percentage of the profit that would reasonably have resulted had the contract been fulfilled.

AVPS has the Internet processing accounts your business needs

At AVPS, we strive to offer the best Internet commerce options with the lowest account fees. If you need an affordable way to accept credit card payment online, do not choose credit card merchant services that overcharge you in transaction and monthly fees. Call AVPS today.

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