Retail Merchant
Account
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.
Great
bundled deal on Nurit 2085 terminal with printer -
super low
rates/fees!
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.
- Back to the
merchant account knowledge base - |
