As a continuation from yesterday’s 10 Newbie Tips to Establish an Online Merchant Account – Part 1, we now present you Part 2 for your reading pleasure!

6. Know your Internet discount rates
Do you know that there is a fixed percentage extracted from every online transaction? This is known as the Internet discount rate, and usually consists of 2 or 3% from the total amount of transactions. This rate is usually higher compared to credit card-swipes due to the increased risks when dealing with Internet transactions.

7. Beware high transaction fees
Although fixed charges for transactions are typically set between $0.25 to $0.70 each, small time merchants will cringe at the thought of paying through their nose especially when they sell low priced items on their websites.

8. Monthly fees CAN be levied
Ask for monthly fees that can be levied such as statement fees (although some unscrupulous merchant account providers charge up to $25 per month!) as well as excess usage fees. Talk to your provider and see what fees can be levied.

9. Holdbacks and chargeback fees
Did you know that merchant account providers have the right to reserve a portion of your transaction receipts in case any charges are being contested by customers. Chargeback fees will also be charged if these transactions have been successfully contested.

10. Setup fees won’t really cost a lot
Contrary to what merchants think, setup fees won’t burn a hole in your pocket. Ask your merchant services provider what sort of software or hardware need to be purchased, and if they can install or setup for you should the purchases be made through them.

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