We regularly survey BuyerZone users to ask how their purchases went. The responses show two types of expenses businesses need to consider: up-front costs and month-to-month payment processing fees.

• Merchant account rates with terminal prices
• Merchant account rates with no equipment
• Merchant account rates for Internet gateways

Up-front costs include things like a credit card terminal, special software, application fees, and account set up. Month-to-month expenses include the discount rate (a percentage of total sales deducted from your transactions), account maintenance, and per transaction payment processing fees.

Depending on the merchant account provider, you may get a break on the up-front costs. For example, if you have enough monthly volume, a vendor may provide a credit card terminal and complete account setup for free.

If you conduct business by phone, through mail order, or over the Internet, you may not even need a credit card terminal. Vendors often bundle Internet payment gateways (or "virtual terminals") into your monthly pricing, allowing customers to securely transmit their credit card information.

Before you agree to work with any vendor, make sure all of these charges (as well as any others) are clearly outlined in your contract.

Payment processing rates with terminal prices

• “$195 for machine, $25 per month plus 1.69% + 30 cents swipe charges. $10 per month customer support fees.”

  - Accountant, Tampa, Florida

• “$69 terminal, no set up fee, $4 monthly fee, 2.17% discount for qualified sales, 24 cents per transaction.”

  - Bed & breakfast owner, Everett, Washington

• “Rate was 1.70%, wireless terminal was $250.”

  - Electronics retailer, Bayville, New Jersey

• “Machine - $400; Discount rate - 1.31% MasterCard.”

  - Art gallery retailer, Yardley, Pennsylvania

• “$1,500 for wireless processing system. $15/mo. limitless air time. 1.59% processing fee + $0.20 each transaction.”

  - Retailer, Scranton, Pennsylvania

• “1.59% plus $.19 transaction fee. Equipment - $350 for multiple users.”

  - Dentist, Saint Louis, Missouri

• “Terminal was $295. Swipe rate was 1.69%. Non-swipe rate was 2.49%.”

  - Financial services president, Beachwood, Ohio

• “Wireless modem/printer $495, no monthly minimum. 1.69% + $.25 per transaction. $19 monthly wireless expense, $5 monthly service charges. No contract.”

  - Media accountant, Virginia Beach, Virginia

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Payment processing rates with no equipment

• “$35 for shipping only, $0 application fee, 12-month contract, $0 monthly fee, $0 minimum. 1.18% to 1.79% discount rate + $.25 for VISA/MasterCard usage. Authorization fee.”

  - Retailer, North Las Vegas, Nevada

• “$39.95 annually with 2.95% + $0.25 per transaction for online or phone processing. No equipment necessary.”

  - Design sales, Chester, Virginia

• “1.29% on debit card, 1.54% on credit card (VISA and MasterCard) locked for three years. $.19 transaction fee (MasterCard, VISA, Discover, American Express.) No monthly transaction fee, no orientation fee. Platinum care with supplies included.”

  - Restaurant worker, Roseville, California

• “1.69% for VISA and MasterCard, $.60 for debit cards. Free equipment set up (PIN pad, card swiper, manual card processor.)”

  - Retailer, Bella Vista, Arkansas

• “Paying nothing for the machine, 2.19% for phone in transactions. $8 statement fee and $0.25 each transaction. No contract, no annual fee.”

  - Private investigator, Pelham, Alabama

• “1.69% credit card rate, 18 cents per transaction, 1.39% debit card, free machine, keypad, no contracts, fees. Open-ended contract.”

  - Restaurant owner, Gig Harbor, Washington

• “I didn't pay anything for the processing machine. I only pay the rates for each charge. $.20 per transaction, 1.75% for credit cards swiped, $5.95 statement fee, and a $15/month minimum charge. Plus I got a $250 signing bonus.”

  - Retailer, American Fork, Utah

• “Free equipment, no contract, 2.22% + $.19 per transaction. $7.50 monthly fee, no other fees. Can put on hold if not doing business.”

  - Farmer, Pottstown, Pennsylvania

• “We pay a percentage (1.59%) of sales, $.19 per transaction, $7.50 monthly statement fee, and the terminal is given to us for the time that we use their service. There is no cancellation fee or contract length.”

  - Marketing Representative, Edgemont, South Dakota

• “1.59% plus $.08 transaction fee. Free Way systems mobile transaction terminal and printer.”

  - Plumbing contractor, Carmel, California

• “Software = $325, USB card slider = $80. $.20 cents per transaction. 2.02% on VISA/MasterCard. No monthly fees.”

  - Advertising sales, Long Beach, California

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Payment processing rates for Internet payment gateways

• “1.99% + $.18/transaction. $6/mo statement fee. $10/mo. payment gateway fee.”

  - Software retailer, Kerrville, Texas

• “Monthly minimum $20. $17/month plus $10/month in fees (for a 'virtual terminal' arrangement through the Internet.)”

  - Dentist, Fond du Lac, Wisconsin

• “$18 a month for web portal and statement plus $25 if I don't do at least $1,000 in sales. 2.24% on cards plus $.25.”

  - Real estate appraiser, San Diego, California

• “2.05% + $.18 per transaction. $6 statement fee. $10 payment gateway fee.”

  - Computer retailer, Grand Rapids, Michigan

• “$8 statement fee, $5 payment gateway fee, 2.29% discount + $0.25 per transaction. $15 minimum per month.”

  - Equipment sales professional, Lawrence, Kansas

• “1.63% + $.19 cents per transaction. $6 monthly fee. $20 wireless fee. 2.75% non-qualified rate.”

  - Locksmith, San Antonio, Texas

• “2.9% with $6 monthly fee plus $10 payment gateway fee. No annual fee or monthly minimum.”

  - Government worker, Newark, Delaware

• “$30/monthly fee includes statement and Internet payment gateway. 2.49% + $.30 per transaction.”

  - Jewelry retailer, Cassville, Missouri

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Want more information on choosing a merchant account provider? Read our Merchant Accounts Buyer’s Guide.

If you already have a merchant account and you’re interested in purchasing a credit card terminal, request a free credit card terminal quote today.

Information was provided by BuyerZone.com users. Quotes have been edited for clarity only.