Credit Card Processing

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

• Card-present credit card processing rates
• MOTO credit card processing rates
• Internet credit cards processing rates

Credit card processing is broken up into two main categories: card present transactions and card not present transactions. Card present transactions mean exactly that - the customer presents the credit card to the retailer at the time of sale. For card not present transactions, the merchant enters credit card information provided through a mail order or telephone order (MOTO), or over the Internet.

The big difference between the two is need for a credit card terminal. Retailers typically need a physical terminal while Internet and mail order businesses can either use terminals or a secure web site (known as a "virtual terminal" or "Internet Gateway") to accept credit cards.

With either type of merchant account, your greatest expense will be the discount rate - a percentage of the total sale that's deducted from each transaction. Card not present transactions often carry a higher discount rate because there is more risk involved. Sales conducted through the mail, phone, or Internet are more susceptible to fraud since there's no signature required and no identification to check.

Other fees to keep in mind include a nominal fee for each transaction processed, equipment costs, application and setup fees, and monthly reports.

Card-present credit card processing rates

• "Hypercom T7 Plus for $255. VISA/MasterCard at 1.63% plus $.25 and American Express at 3.5% plus $.25. A $15 per month minimum."

  - Retailer, Westphalia, Missouri

• "$149 for terminal w/printer, $1.65 per transaction, $.25 transaction fee, $.25 batch fee, $5 per month statement fee, no minimum."

  - Attorney, Valencia, California

• "Visa/MasterCard - 1.74%. $.25 each transaction. Verifone Omni 3750 for $1,084."

  - Lumber CFO, Stockton, California

• "Way Systems MTT wireless terminal and printer $495. No contract. 1.69%. No monthly minimum. $19.99/mo. wireless fee plus $5 statement fee."

  - Retailer, Markleville, Indiana

• "Linkpoint 2000 with printer $295. Monthly service fee for VISA, MasterCard, and Discover - $10. 1.79% plus $.20 each transaction."

  - Retailer, Hatboro, Pennsylvania

• "$395 for swipe and key terminal. Manual swipe machine free. 1-yr contract. $10 per month. 2.49% plus $.23 per transaction."

  - Equipment sales, Plano, Texas

• "$45 start-up costs plus a percentage of purchases at 1.65% and $.25. Fixed costs are $10 statement and $20 wireless service monthly fees. Equipment was free."

  - Retailer, Manhattan Beach, California

• "1.59% on purchases plus $.19 transaction fee. $7 monthly statement fee. No early termination fee, no application fee, no annual fee, and I'm able to use my existing credit card terminal."

  - Liquor store owner, Sallisaw, Oklahoma

• "1.9% discount rate, $.19 per transaction fee, and $10 per month statement fee. No other charges at all. And free equipment."

  - Restaurant Owner, Bellingham, Washington

• "Linkpoint AIO -$39.95/mo or $1,250, $7.95/mo for PIN pad - 1.69% plus $.30/transaction, $10 statement fee."

  - Educator, Coloma, Michigan

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MOTO credit card processing rates

• "$40 account set-up - $15/month Gateway access - $15/month min. fee - $.23/transaction."

  - Retailer, Meridian, Idaho

• "2.29% per transaction - $.25 per transaction - $5 statement fee. The statement fee is why we chose this one. The others were $10 or more and we only do about two transactions a month. We also bought a terminal from them for $129.

  - Construction president, Garden City, Missouri

• "Application fee $95, monthly minimum $35. Transaction fees of 2.55%."

  - Wholesaler, Santa Rosa, California

• "$189 for licensing of Gateway software - $30/mo ($20 Gateway plus $10 statement.) 2.19% plus $.25/transaction."

  - Tutoring facility, Bellaire, Texas

• "$59.95 a year. 3.25% processing plus $.30."

  - Retailer, Carrollton, Ohio

• "No application fee; no equipment setup fee; no contract; no termination fee; $5/month statement fee; 1.23% swiped debit card fee, 1.53% swiped credit card fee, 1.8% keyed in transaction fee; $.22/transaction fee; $25 chargeback fee."

  - Manicure school, Birmingham, Alabama

• "$100 set-up fee, $20 monthly fee, $.25 per transaction, discount rate of 2.09%, no annual fee, no equipment, monthly min. $25."

  - Information systems accountant, Washington D.C.

• "No upfront cost. No terminal necessary, they have a virtual online. $50 minimum cost per month (no transactions.) 2.4% on transactions."

  - Trailer sales, Attleboro, Massachusetts

• "Purchased software for $125; monthly statement fee only $8; no Gateway fee; 2.19% plus $0.25 per transaction fee."

  - Attorney, Torrance, California

• "Internet-based services - $150 software setup, $10 per month, no monthly minimum, no other setup or annual or monthly fees. 2.05% discount rate plus $.20 per transaction for VISA/MasterCard, 3.50% for American Express plus $.15 per transaction."

  - Construction office manager, Brighton, Colorado

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Internet credit cards processing rates

• "$10 customer service, $20 SSL Gateway, 2.49% plus $.30 transaction fee. $19.95 Linkpoint. $650 virtual terminal."

  - Retailer, Cape Coral, Florida

• "I paid zero up front - 1.99% of transactions - $16/month fees - month-to-month contract. No fees to cancel."

  - Electronics retailer, Philippi, West Virginia

• "I pay $5/month for a merchant account with no other fees and a free imprinter. No other monthly statement fees, etc. Then I pay a $.19 transaction fee plus 2.7% on Visa/MasterCard/Discover and 3.5% on American Express."

  - Manufacturer, Milford, Connecticut

• "$65 set up, $49 monthly equipment lease for 48 months, e-commerce account - free. $25 MasterCard/Visa for 3 months, dropping to $9 after. $5 for American Express, $6 Discover. 1.63% card present, 2.17% online or card not present transactions."

  - Business services provider, Fallon, Nevada

• "2.12 % plus $.25 per transaction, $15 fee with transaction charge subtracted. $8 reporting fee. Free virtual web terminal access plus free help with web shopping card setup."

  - Coffee bean retailer, Pittsboro, North Carolina

• "Monthly service - $10, security Gateway - $10, transaction fee - $.25 per transaction, rate 2.19%."

  - Book store owner, Baton Rouge, Louisiana

• "Overall, we will pay $39.95 per month with an average of 1.8% per purchase. Additional software that we purchased for bookkeeping was $149. Beyond that, their software connects to all other software that we have and will save us about $8,000."

  - Retailer, Spokane, Washington

• "1.99% VISA/MasterCard discount rate, $0.17 auth/batch fee, $0.05 AVS fee, $10 monthly Gateway fee, $3 monthly statement fee, $35 chargeback fee, no merchant and Gateway setup fee, no cancellation fee."

  - Computer retailer, Everett, Washington

• "Total of $30/month for the Linkpoint service with the ability to process cards online over the phone or allow the customer to process the card without me knowing any of their card info. $650 for the Gateway at $29.95 a month."

  - Soap retailer, Blackduck, Minnesota

• "Base rate of 2.09% with no per transaction fees. $5 statement fees. Internet transactions to replace rental machine."

  - Dentist, Albuquerque, New Mexico

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Want more information on choosing a merchant account provider? Read our Credit Card Processing 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 or instantly compare merchant account providers today.

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