Whether you are currently a credit card merchant or investigating merchant processing services, there are still a few common questions that everyone asks about merchant processing services. To help clear up any confusion, we are answering a few frequently asked questions from credit card merchants.
1. What Is A Merchant processing account?
A merchant processing account is an understanding between a bank and a credit card merchant that allows businesses to accept ability to accept credit card transactions from your customers in exchange for goods or services.
Merchant processing consists of the credit card transaction going through the POS device and the payment being deposited into your account. Depending on the payment and the product you used, merchant processing can take about forty-eight hours from start to finish.
2. What costs are associated with Merchant Processing?
Credit card merchants should know about a few different considerations when researching merchant processing costs. The first is the use of a POS device, like a terminal. Although you can lease POS equipment, it is more cost-effective to purchase it.
The second cost consideration is the result of fees associated with the merchant processing account. How much merchant accounts cost credit card merchants depends on the merchant account you are utilize. However, the majority of the time fees are anywhere from 2.00% to 5.00% of the payment.