Merchant Account Fees to Business Owners

As a business owner, when you set up a merchant account to enable your customers the ability to pay for your products or services using credit cards (or debit cards with a Visa or Mastercard Logo), you will have some fees associated with the credit card transactions.

The specific fee amounts that you pay will depend on the merchant North American Bancard Agent account provider you select to provide your credit card processing service; however, there is a list of typical fees that the majority of providers charge business owners in exchange for the ability to accept credit as payment.

Discount Rates

Visa and MasterCard have what is called "interchange" rates. They range in price- so in order to make it easier, the merchant providers created three categories.

Qualified Discount Rate - a percentage is paid from each dollar charged.

Mid-Qualified Rate - does not apply to merchants that manually enter transactions.

Non-Qualified Rate - added to the qualified rate n certain transactions. Also get billed this higher rate if you don't use address verification service (AVS) when you manually enter transactions.

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