Pricing and Costs of Online Merchant Accounts

Consider all of the fees associated with online merchant account services

Once you decide to look into online merchant options, you’ll want to figure out how much it will cost your company to start accepting web payments. You’ll want to find a low cost provider that offers seller protection in the case of buyer fraud.

Fees that you may have to consider for a business merchant account include application fees, fixed rate fees, transaction fees, termination fees and any other miscellaneous costs imposed by the company. To high volume sellers, Internet merchant accounts may offer discounts.

1. Figure out pricing and costs of online merchant accounts. You may decide to work in the fees into the price of your merchandise in order to offset the cost.
2. Compare Internet payment providers. Determine the Internet payment services that they offer and what type of seller protection that they provide. 
3. Sign up for your business merchant account. Sign up will not usually cost you money and you will need to only provide some information about your business. Other online merchant account services will charge you a set up fee in order to start processing payments.

Learn about the costs of Internet merchant account services

The two main types of Internet payment providers are free and paid sites. With a free site, you don't have to pay a sign up or maintenance fee. However, transaction fees will likely get deducted from each payment. With a paid site, you'll pay a start up fee, but likely pay a lower transaction fee rate.

Find low cost online merchant services

Making sure you consider all costs associated with a small business merchant account can ensure that you're getting the lowest cost provider possible. All online merchant account service providers should have a fees page on their website that breaks down the cost of the account.

Pay a transaction fee for online check processing and Internet credit card services

Although some Internet merchant accounts may not cost you any money to sign up, you'll still likely need to pay a transaction fee in order to accept credit card online or check payments. Look for Internet payment services that charge the lowest rate.

• Face to face transactions will likely have a different transaction fee than Internet orders when using Internet credit card payment processing. They usually have a lower rate, typically less than 2%.

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