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Merchant accounts compared
By Christine
Selvig • Bankrate.com
 With
the proliferation of plastic nowadays, a business that doesn't accept
credit cards might not be in business for very long.
Just as your customers shop around for the best
price on a product or service, so should you shop around for the
best deal on a merchant account, which will let you accept payments
in plastic.
Most merchant account providers use a two-tier
system.
Costs are lower when customers hand over their
credit cards to make in-store purchases. This lets the business
owner eyeball the card, physically swipe it through a magnetic reader
and then match the signature of the bearer with the one on the card.
Costs are higher when the card is not physically
presented to the merchant, and the order is made via mail order,
over the phone or by the Internet.
The table below offers examples of merchant
accounts and their associated costs from a variety of companies.
The information was gathered online or by contacting individual
firms. Inclusion in this list is not meant to endorse any particular
company, but simply to give small-business owners an idea of the
range of merchant accounts available, and their costs. The services
offered and the prices can change at any time.
|
Provider and
service
|
Setup fee, licensing fee and/or equipment costs |
Equipment leasing option monthly charges |
Monthly Internet charges for secure hosting and gateway
access |
Discount rate |
Merchant bank transaction fee |
Banking statement / customer service fee |
Webcharging/
Merchant Bank
Online-only merchant account |
$99 plus $30 a month |
Optional |
$0.10 per transaction with $10 minimum |
2.5% or $25 monthly minimum |
$0.30 each |
$10 |
Charge.com/
Imperial Bank
In-store or phone mail-order merchant accounts |
$195 to $495 |
$15 to $25 |
$15 |
1.65% in-store 2.45% mail-order $25 monthly minimum |
$0.20 to $0.30 each |
$10 |
AIS
Media Corp. /Humboldt Bank
Internet and in-store merchant accounts |
No charge with 48-month leasing commitment of
$30 to $35 for 48 months |
$30 to $35 |
$15 |
1.54% retail, 2.30% Internet |
$0.20 to $0.30 each |
$10 |
Merchant
Express/ Region's Bank
Standard account, including in-store, mail-order, phone-order
and Internet business |
$75 for application, plus $495 for Internet setup
fee |
$26 to $43 |
$15 |
1.65% retail, 2.09% mail, phone or Internet |
$0.20 to $0.30 each |
$10 |
Merchant
Express/ Region's Bank
Special risk account for in-store, mail-order or Internet business |
$75 for application, plus $495 for Internet setup
fee |
$26 to $43 |
$16 |
1.79% retail (swiped) to 2.49% mail, phone or
Internet |
$0.30 each |
$15 |
First
Data Merchant Services/First National of Bentonville
In-store, phone-order, mail-order and Internet merchant account |
$65 plus $495 for Internet software |
$29 to $59 |
$20 |
Minimum 1.5% retail; minimum 2.49% for catalog,
mail order and Internet transactions |
$0.20 to $0.30 each |
$10 |
Total
Merchant Services/Imperial Bank
Internet-based business merchant account |
$125 plus $995 to $1,295 |
As low as $40 |
$10 |
2.4% |
$0.35 each |
$10 |
Total
Merchant Services/Imperial Bank
In-store only merchant account |
$125 plus terminal equipment costs |
As low as $30 |
NA |
1.65% for Visa / MasterCard retail |
$0.25 each |
$10 |
G.da
roos/ Humboldt Bank
In-store, phone-order, mail-order and Internet merchant account |
Credit card terminal including printer starts
at $495 |
As low as $19 |
NA |
Starts at 1.52% |
$0.18 retail and $0.30 for mail or phone orders,
each |
$10 |
Merchant
Card Services/ Woodforest National Bank
In-store or Internet-based merchant account |
$395 and up |
$22 to $59 a month |
$10 |
1.59% to 2.35% |
$0.20 to $0.30 each |
$9 |
|
NA=Not
Available
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-- Posted: May 1, 2000
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