Merchant processing service rates for high-risk businesses are always higher. It is important to shop around when looking for credit card processing services. There are different features that all customers charge, yet the fee and service differences can be extremely different. Typically other merchant account providers can charge:
- Charge back fees/penalties—Charge incurred if a customer credit card charge is declined due to fraud or another cardholder complaint
- Credit card processing fee—Fee charged every time you run a credit card through your card reading machine or via your website
- Customer service hours—These will vary, but they are the hours when you can contact the merchant processing company with questions
- Gateway fees—Monthly charge for connecting to their computer system
- Minimum charge (monthly requirement)—Minimum amount the company will charge for the statement and processing fees, if you only charge $15 in fees and have a pre-set minimum of $30, you pay that full amount regardless
- Set-up fees—One time fees that cover the cost of hooking up your registers to the merchant processing company’s computer system
- Statement fees—Monthly fee charged for printing your payment statement
- Surcharge for technical support—Fee charged for using the company’s technical support
- Transaction fees—Percentage charged for the total amount charged to a client’s credit card
The fees for high-risk companies are always higher. Take a look at the differences in typical rates for a company selling authentic merchandise.
- Charge back fees/penalties--$10 to $40
- Credit Card Processing Fee—15 to 50 cents each
- Customer service hours—Some have typical 9 to 5 hours while others are open 24/7
- Gateway fees—Free to $50 per month
- Minimum charge (monthly requirement)--$15 to $50 per month
- Set-up fees--$50 to $500
- Statement fees--$5 to $10 per month
- Surcharge for technical support—Free to $60 per month
- Transaction fees – 1.5 to 3%
High-risk companies can expect these fees to be two or three times the fees charged for a normal merchant. Statement fees are generally the same, but many merchant processing companies charge a $1,000 set up fee and then require credit card processing fees of 50 cents to $1.50 each and charge back fees of up to $60. The transaction fees usually range from 3.5 to 5%. It is important to raise your prices high enough to cover these costs, but doing so might price your merchandise to levels consumers are not willing to pay. This can make it hard for a company selling replica goods to turn a profit while trying to prove themselves.
The best way to earn a solid clientele is by being completely honest about the products you sell and keep your prices reasonably priced. Do not try to earn top dollar at first. Build your reputation and then once you have a solid customer base, you can raise prices slightly to increase your revenue. It is also important to really research the different rates and find a merchant processing company that handles the big credit card companies—American Express, Discover, MasterCard, and Visa—without charging fees that are excessively high when compared to their competition.