Credit Card Merchant Company Information

Companies can become credit card merchants by obtaining a merchant service account. This is a good way to improve cash flow and simplify the collection of payments for the company.

Discount Rate

Credit card merchant companies pay a discount rate that is calculated as a percentage of every transaction and paid to the merchant service account provider.

Swiped Vs. Keyed Discount Rate

Discount rates are lower for transactions where the credit card is present at the point of sale (POS) and swiped (such as at a retail store) than those transactions that are keyed in by hand (such as orders taken by phone or fax).

Transaction Fees

Transaction fees are charged per transaction along with the discount rate and typically are fixed rate.

Monthly Maintenance Fee

Merchant accounts usually charge a monthly account maintenance fee.

Payments Deposited

Payments from transactions processed are usually deposited directly into the credit card merchant company's bank account approximately one to three days after each transaction.

Fees Debited

Fees for discount rates, transaction fees, and monthly account maintenance are usually debited directly from the company's bank account the deposits are made to.

References

• Guide to Merchant Account Services