You often come across these words on the internet-“free merchant accounts”. Consequently lots of people spend valuable time looking for merchant account services that provides free merchant accounts.
However, just as you want a merchant account to be able to tap on the credit card using online shoppers, to add to your profits, similarly, merchant account service providers are in the industry to garner profits. It is after all a business like any other and not charity!
Moreover, being a merchant accounts service provider is a complex and costly business. It is ingrained with fraud and the competition out there is neck to neck. There are dangers at every nook and corner of becoming liable for fraud and to thrive in this industry unrivalled technology is required.
Hence, it is not a cheap exercise at all! For the merchant account providers to make a profit after taking up a risky business, there is no way that accepting credit cards on the internet is not going to cost you in any way. There will definitely be a cost involved! There really is no such thing as a "free merchant account", other than a few merchant accounts you can set up for free or low cost, though not many.
While setting up a merchant account for you, the service provider spends on processing your application, setting up your unique login details, testing your forms, ensuring you're sticking to all the rules and answering enquiries from clients. All this is very expensive. Thus, you are expected to pay your way during this crucial introductory period. Following the initial set-up, things get a lot cheaper for both parties.
To understand why there are no "free merchant accounts", it is important to study the various fee structures of different merchant account providers. Without exception all merchant account providers charge a fee every time you accept a credit card payment on your website. What they charge is either fixed amount in dollars or a percentage of the sale value.
While checking out the cost involved in setting up a merchant account, you will encounter two kinds of fee structures- A high setup fee ($100-$400) and a low per-transaction fee, or a low or free setup ($0-$50) with a much higher per-transaction fee. Your circumstances will decide the option that suits you best.
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Credit Card Processing and Merchant Account Services.
