Any merchant account is going to charge certain fees to use their service. Some of those fees are what are known as “junk fees”, but others are regulated or represent a commission the merchant provider is taking for the service. Understanding what these fees are is an important part of analyzing potential contracts. Before you get too deep into your search for the perfect credit card processor, read this guide.
Normally, a payment processor would charge fees for using various portions of the service. If they lease the payment gateway, for example, you’ll be charged a gateway fee to help collect on those costs. Occasionally, you may be charged for certain statements you order, or be asked to pay for a monthly minimum fee. These fees are fairly common. While none of them should be too high, combined they can represent a major dent in your potential profits per transaction.
If you require setup, the industry standard for those costs is somewhere between $0 and $150. It’s completely possible to find free setup, but it depends on what you need. If you require complete integration of online credit card processing to your website, that could be a lengthy development process. In some cases, it’s better to pay a small cost to have that installed than it is to try and do it yourself. Time is money, after all.
Junk fees go toward the processing company, and don’t really cover anything you can quantify. There isn’t a firm guide on junk fees, as names will vary, so the rule to keep in mind is whether customer service can justify it. If you’re not sure about a fee, call the company and ask what that money pays for.
Charge.com Payment Solutions, Inc. was rated the number one credit card processing companies six years running. Come see the difference at Charge.com.