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If you’re looking
for a merchant account, you see those kind of
websites everywhere. You know the kind I’m
talking about: The sites that are lit up like
Vegas nights, screaming in bold letters, “LOW
RATES!”
It can be tempting
to choose a merchant account provider based on
such fantastic claims. However, there’s more to
an internet merchant account than the big, flashy
rate that a website claims to offer its customers.
First of all, there
are a few different types of rates. The rate they
were probably quoted is what is called a
“Qualified Rate.” A qualified
rate is the percentage rate a merchant will be
charged whenever they accept a regular consumer
credit card and process it in a manner that is
acceptable with their acquiring bank, such as
swiping the card and verifying the address. This
is the lowest rate a merchant will incur when
accepting a credit card.
The
next rate is called a mid-qualified rate. This
rate is what you will pay if you accept the card
in a way that does not qualify for the lowest, or
qualified rate. This is what you would pay if you
would key in the card information instead of
swiping the card. A mid-qualified rate is usually
1.00% - 1.50% higher than a qualified rate.
Mid-qualified rates only apply to retail
businesses.
A
non-qualified rate is the final type of rate. The
non-qualified rate is the highest percentage rate
a merchant will be charged whenever they accept a
credit cards. All transactions that are not
qualified or mid-qualified will fall to this
rate. This rate would be used if a consumer
credit card is keyed into a credit card terminal
instead of being swiped and address verification
is not performed, or the daily batch would not be
completed in a timely fashion.
So,
when choosing credit card processing services,
don’t listen to the first rate you hear. Many
companies will try and entice you with a low rate,
and then get you on a higher mid- or non-qualified
rate. It’s important to examine all the details
before selecting your company.
That’s why you should choose merchantaccount.com.
We’ll help you choose the right account for your
needs, with the best all-around rates you can
find. Call us
today at 1-800-956-1990 for more information! |
