Merchant Processing Credit Card Standard Fees
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If you have recently applied and been approved for a merchant processing credit card, you can expect to be responsible for certain fees. The type and amount of fees would vary depending on several factors such as the issuing merchant, bank, or credit union, the type of credit card, and even your credit history. Therefore, you want to make sure you have good credit and that you choose the credit card company, as well as the merchant processing credit card wisely.
If you have recently applied and been approved for a merchant processing credit card, you can expect to be responsible for certain fees. The type and amount of fees would vary depending on several factors such as the issuing merchant, bank, or credit union, the type of credit card, and even your credit history. Therefore, you want to make sure you have good credit and that you choose the credit card company, as well as the merchant processing credit card wisely.
Regardless of the issuing company for your merchant processing credit card, you can expect to pay some type of fee. This could be in the form of several types such as a “transaction fee”, a “discount rate”, or “monthly fees”. Just as an example, every time you make a purchase or use your merchant processing card at an ATM to take out money, you could be charged some type of fee. As you will see from the information below, different fees mean different things.
Transaction Fees
This fee on your merchant processing credit card is set, meaning that the amount never changes. Each time you make a purchase or use your card at the ATM, you would pay a transaction fee, which varies from one issuing company to another but usually, the fee is anywhere from .25 to .50. Interestingly, there are times when you can get around paying this fee by using the merchant processing credit card as a debit card instead of a credit card. For instance, when you purchase groceries, you would have an option to choose and if you pay with the card but as debit, the fee is usually void.
Discount Rate
The next fee associated with a merchant processing credit card is the discount rate. For this, the issuing company would deduct a certain percentage of the transaction from your bank account, before the deposit is made. As mentioned, a number of factors are involved in determining the amount but most merchants, banks, and credit unions have discount rates between 2.5% and 5%. Often, discount rates are connected to business cards so you would need to review the terms and conditions or talk to the issuing company before agreeing to the card.
Monthly Fees
The last category in which fees would likely be applicable for your merchant processing credit card is the monthly fees. Rather than a charge for transactions, these fees cover anything service related to your account, which includes customer support. These fees would also be for accessing your account online, receiving a monthly statement via internet or mail, etc.
Remember that every merchant, bank, and credit union is required by law to disclose every fee charged for using the merchant processing credit card. With this information, you would have the option of accepting the card or choosing to secure a card with a different issuing company. Therefore, if applicable fees are not provided to you, consider this a huge warning to move on. Obviously, you want a merchant processing credit card with the lowest fees possible.
