Credit Card Processing

A sampling of actual low cost merchant account prices paid by credit card processing customers who used BuyerZone's service can be found below, complete with purchasing details.

• See Usage Based Rates
• See Equipment and Setup Rates

Based on the pricing they reported, here are some points to consider:

• If you have enough monthly volume, a vendor may provide a credit card terminal and complete setup for free.
• You pay a "discount merchant account rate" - a small percentage of each transaction - to credit card processors. This percentage, typically 1.5% to 3%, is based on your evaluated risk, average sales tickets, transaction types, and total charge volume. The vendors may also charge a small, fixed fee for each transaction - roughly 20 to 30 cents.
• "MOTO" refers to "mail order-telephone order" and can also include online charges. Since these transactions don't take place in person, they're considered riskier and carry a premium.
• A credit card processing vendor may charge several other fees for monthly statements, terminal setup, and customer support. Make sure you have a complete understanding of all the charges you will incur before making selecting a vendor.

Usage Based Rates

These prices may include a few minor fees for monthly statements or required monthly minimums, but the bulk of the fees paid are for the transactions.

• "A discount merchant account rate (which fluctuates based on my sales), and a $0.30 per transaction fee. No minimums, no equipment to purchase, a monthly fee of $20 for face-to-face transactions, no set up, no application fee, no gateway fees, no AVP. In sum, it was simple, and inexpensive after I calculated a base scenario using everyone's pricing." - Health Care Professional, Cincinnati, Ohio
• "All keyed transactions: 2.09% plus $0.25 per trans plus $5/mo statement fee. No contract. We will receive a free Verifone Tranz 330." - Stair parts wholesaler, Alpharetta, Georgia
• "We're an espresso coffee shop. Per-transaction fee was key. We got $0.17/transaction, no start-up fee, only tiny amount higher percentage rate. Biggest plus - they knew the POS system we are using (CoffeeShop Manager) intimately, so they helped us get the card reader working." - Coffee shop owner, Boaz, Alabama
• "There are no fees for application, annual fee, monthly minimum processing, or batch/settlement. There is a monthly statement fee of $9.95 - Discount Rate for MOTO is 1.87% plus $0.15 per transaction for debit cards. The rate is 2.12% plus $0.15 per transaction for credit cards. The non-qualified rate is 3.03% plus $0.15 per transaction." [$25,000-$50,000 in monthly charges] - Sales, North Kansas City, Missouri
• "No setup/monthly/cancellation/statement fees - 2.2% to 2.9% discount merchant account rate plus 30 cents transaction fee." - Training video producer, Andover, Massachusetts
• "Our rates for keyed transactions are 2.15% on Visa/MC (personal or business) w/ no trans fee, 1.69% on Discover w/ $0.10 transaction fee & 2.95% on AMEX. No fees for annual use, statements, applications, reprogramming, or no minimum processing. Rates will not change for three years. Free terminal." - HVAC service and sales, Highland, Indiana
• "MOTO account, 1.98% plus $0.18 per trans / $8 statement fee / no contract, no minimum." - Camera repair, Willow Grove, Pennsylvania
• "I'm paying 2.05% on most credit card transactions. No batching fees. I believe it's a $19.95 monthly minimum. I do all my processing via the internet, and there is no additional charge for that. I did not have to buy terminals nor software. I did not have to pay an application fee." [$25,000-$50,000 in monthly sales] - Wood & concrete sealant provider, Rochester, Minnesota

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Equipment and setup pricing

• "$239 Hypercom T7Plus - 1.69% discount rate plus $0.25 transaction fee - $5 monthly fee - no minimum." - Photographer, Allendale, Michigan
• "Nurit 8320 w/ add'l keypad - $550, $7/monthly, $25 min or 1.69% plus $0.25." - Home decorations supplier, Bronx, New York
• "$99 setup /$10 per mo. flat fee / 2.25% plus $0.30 per transaction. Also $4.95/mo. for bank provided online banking (no flat fee if not used during the month.) Gateway & virtual terminal included as well as shopping cart with availability of free shopping cart software that we like." - Screen painter (manufacturer), Beaverton, Oregon
• "Hardware $300 - fee 1.75% for swipe and 2.25% for keyed in - $5 statement fee, $0.20 per transaction." - Business Service Provider, Delmar, Maryland
• "I paid $2,200 for 4 Verifone 3250's, then 1.75% monthly fee, and set up fee of $35. Gift card capabilities for $600. Also pay $0.25 per transaction." [$50,000-$100,000 in monthly sales] - Gift card retailer, Geneva, Illinois
• "$99 startup fee - 2.39% discount merchant account rate - $25 monthly fee - no yearly contract - geared towards vacation rentals." - Vacation rental, Valley Center, California
• "$425 for wireless card reader and printer and all the software." - Mobile kiosk operator, Indianapolis, Indiana
• "$795 for Nurit 8000 wireless, and 1.57% for VISA/MasterCard plus 15 cents each transaction." - Retailer, Las Vegas, Nevada

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Want more information on choosing a merchant account provider? Read our Credit Card Processing Buyer's Guide.

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