Merchant account is the contract wherein the bank that aims to acquire extended line of credit to a merchant that accepts payment transactions through card of a certain card association or brand. Being familiar with merchant account and its provider can help credit card holders a lot in being educated about the financial transactions they make. Understanding how merchant account works and choosing the right merchant account provider is a must to ensure that there will be no financial hassles in your future transactions.
Qualities of a merchant account provider
There is a wider selection of merchant account providers today than before. So, you ensure that you are choosing a merchant account provider, you must always prioritize the immediate needs as to minor benefits. A good merchant account provider should have:
- an organized fee structure. It doesn’t necessarily mean that it has to offer low rates, it should at least manage well the monthly fees and other the transaction fees made by the client.
- a discount fee that will not exceed to 2.25% and $0.30 per transaction. Although this will depend on the type of credit cards available, you should keep in mind that the rates would be at that level.
- no monthly minimums. A good merchant account provider does not require monthly minimums because this will only lead to more miscellaneous fees for its clients.
- less than c $30 for monthly statement fees. Although most clients would agree that statement fees should come free, this is not possible because the bank itself spends for these fees. It is only fair to pay less than $30 for a statement to monitor your transactions monthly.