Credit Card Payment Gateways Transaction Fees

Every time that you use the credit card payment gateways, you will be charged a fee, in most cases. There are two fees involved here. One is called the discount fee. It is a percentage of the purchase which averages between companies to be about 1.5 to 2.0 percent; while some of them may go as high as 5.0 percent. The other fee is a transaction fee and it comes to an average of about 25 cents per transaction.

Nearly all of the companies will also charge a monthly fee for service, too. The average fee, when you compare credit card processing services, is about $25 per month, which is a minimum. Then there is also a $10 per month fee for your statement. This fee is standard.

Extreme caution needs to be used here because there could be a number of other monthly or yearly fees added. This means that there probably are hidden fees - so be sure you ask about them before you sign the agreement.

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The option of portability of the equipment is another consideration in choosing the right service. Companies that offer portability are the most desirable, since you can have your credit card payment gateways with you wherever you go - at fairs, etc.

Another thing that you need to ask about is how long it may take to actually have the money put into your bank account. There is a difference between the time it takes for a credit card transaction in the store, and the time it takes for a MOTO (Mail Order / Telephone Order) transaction. The MOTO type of transactions normally will take a little longer.

Then there is the question about which bank you can have your funds deposited in. Nearly all of gateway companies will allow you to have your funds deposited in your own bank, but some actually will require you to set up an account with their bank.

Fraud Protection

Companies want to give you the best of service. They may offer levels of secure features, some of which may cost a little more. While most of them have secure levels of encryption, some will give you the option if you want address verification. About half of the companies will charge for this - about 5-10 cents per transaction.

One caution needs to be given here. Many companies of this type are starting up all of the time - some of them are frauds. It may be a good idea to also go online and check around for information about this company, as well as finding out how long it has been in business.

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