Retail merchants who need a retail merchant account will be pleasantly greeted with low processing rates, but sometimes (depending on the provider that you select) you can end up paying a high equipment price. Unlike Internet-based businesses, retail merchants will need to purchase a swipe terminal (sometimes more than one depending on the number of checkouts you have). Swipe terminals tend to cost several hundred dollars, though some reliable models can cost under $200. You can purchase refurbished units cheaper. Discount rates are around 1.70% and up with a transaction fee of $0.20 to $0.25 cents. No gateway fees should apply to retail merchants, however there is usually a monthly statement fee ($7 to $10) and monthly minimum to meet ($20 to $25), but again depending on the provider your monthly minimum may be waived.
When getting your retail merchant account, a lot of merchant account providers will try to force you into a lease situation. It is highly recommended that you purchase a swipe terminal outright at the beginning, instead of going through a monthly lease option. In most cases, leases are non-cancelable so if something happens to your business, you’d still need to pay on the lease till it expires. Most leases run 3 years. The shorter the lease, the higher you will pay each month. Also, with leases you’ll end up paying way more in the end for a terminal then if you would of just purchased it from the beginning.
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Check out our in-depth guide on retail merchant accounts entitled, “Guide to Retail Merchant Accounts & POS Swipe Terminal Solutions“. It covers everything you want to know about setting up your retail storefront for payment processing.