 A merchant account gives a business the ability to accept credit cards
as payment for the company's goods and services. This provides your
customers with an extremely popular payment option, beyond cash and
checks.
What are the requirements?
To apply for merchant account and accept Credit Card, Cardservice requires
that you have a business checking account that we can deposit into. If you
are a Sole Proprietor, some banks will allow you to add your DBA. (doing
business as) name to your personal checking account. If your bank allows
this, then Cardservice can accept it as a valid account to deposit into.
All other business types (corporation, partnership, LLC, etc.) do require
a business account. You must have a US business address and a US bank
account to be eligible.
Fees
- Application
& Set up Fee
Initial fee paid to merchant service provider for
establishment of account, processing and reporting
tools & capabilities.
- Discount
Rate
The percentage of the transaction that the merchant
is charged by the merchant service provider for
facilitating a credit card transaction.
Discount rate: 2.35% ($25/mo. minimum)
- Transaction
Fee
Small charge paid to the "processing
network" (e.g., Visa/MasterCard) for use of
their system, for each transaction processed.
Transaction fees: $0.25(+ $0.05 AVS) per transaction
- Minimum
Monthly Fee
Merchants pay for credit card service on a per
transaction basis, through a combination of
transaction fees and discount rate charges.
Generally, based on normal business volume, these
transaction-related charges cover the minimum
monthly fee.
Minimum Monthly Fee: $20.00
- Monthly
Service & Statement Fee
Monthly service charge paid to merchant service
providers for statement preparation, reports and
24/7 technical support.
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