Charges for online merchant processing
Online merchant processing is the system of processing credit and debit card transactions over the internet through the use of an online merchant account. To use an online merchant processing account you may be charged certain fees according to the type of online merchant processing used, the size of your business and volume of transactions and the country of registration. It is highly advised for individuals and companies seeking to use online merchant processing to consult with a professional and experienced consultancy firm to in form you of all the necessary obligations you must meet.
For more information on obligations and relevant charges for using an online merchant processing account, please Contact Us.
Online merchant processing charges explained
Online merchant processing charges will vary depending on the processor you obtain your online merchant account from. However there are four standard fees that are charges across most online merchant processing accounts, which are; discount rate, transaction fee or gateway transaction fee, and refund fee.
Discount rate – The discount rate is a fee charged as a percentage of the transactions value.
Transaction fee – this particular fee is also known as a gateway transaction fee and is a small fee paid for each transaction that is processed.
Refund fee – this is a fee that is charged for every refund that is issued by the user of the merchant processing account.
Chargeback fee – a charge back fee is charged for every charge back that the client performs on transactions that have been processed. In many cases chargeback fees are relatively high but the amount will depend on the type of account and location of your company.
In some cases, the owner of an online merchant processing account will be expected to pay further fees such as anti fraud fees and address verification (AVS) fees.
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