This is a proposal I received from a local bank to set up a merchant account. Many of you have been of great help in previous posts and I just wanted to know everyone's thoughts on these fees for a merchant account. Thanks! Set up fees - (one time fee) $30.00 Transaction fees - $.23 per auth. Discount Rate - 3.42% CNP M/C-Visa interchange fees - Pass through from processor. Monthly Maintenance fee - $6.50 (includes help desk, & statement) Orbital Gateway additional charges On Time Set-Up Fee $159.00 Internet Access Fee (monthly) $25.00 Per Auth Fee $.10 What exactly is the difference between the transaction fee ($.23) based on per auth. and the per auth fee ($.10)?
The discount fee is a bit high for US merchants. The per auth fee from the gateway is a bit high - usually the gateway is not charging anything except a monthly fee. The merchant account provider will usually charge a transaction fee / authorization fee. The transaction fee / authorization fee are similar, just some processors / gateways charge differently and it seems that this one does. The set-up fee for the merchant account is OK, but most do not charge anything for this. They used to charge around $1,000 - $2,000 for the set-up, but those days are long gone.
Does the discount rate include the interchange fees in it? If it doesn't then your effective rate will be more like 5% and $.33 / transaction. If you're based in the US then you can definitely find something a lot better than this. If you're not US based, then it may be reasonable depending on what country you are in.
They look a bit high. We don't charge a setup fee or monthly maintenance fee. Our discount rate begins at 1.18%. Shop around a bit more. In regards to your question That .10 auth fee is added to every transaction on top of your normal transaction fee. I would look for someone else.