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Merchant Account Terminology

Merchant Account
An account setup by a bank which allows you to accept credit cards. Your merchant account will deposit collected funds into your business's checking account every 24 hours.

Discount Rate
A percentage that is paid to the credit card company on each transaction. If a customer makes a credit card purchase worth $10.00 and your discount rate is 2.4%, you pay $0.24 for the $10 sale. A competitive discount rate is roughly 2.40%. Keep in mind that discount rates on the web are higher than that of brick and mortar stores. Make sure the rates that are quoted to you are for INTERNET sales. All rates listed on this site are for INTERNET sales.

Monthly Processing Minimum
The monthly processing minimum is the MINIMUM monthly fee you must pay to the credit card company. A competitive monthly minimum is approx $30. Example: If you sell $1000 in goods over one month, your total Discount Rate (see explaination above) would be $23.90. This amount does not meet the $30 minimum so the credit card company will round your charge up to $30. If the discount rate and transaction fees exceed $30, then you have met the Monthly Processing Minimum and the fee does not apply.

Statement Fee
This charge is exactly as it sounds. The fee you pay for the bank to generate and mail you a statement outlining your transactions. Statement fees usually cost between $10.00-$15.00/month. The statement fees on all EasyMerchantServices plans are included in our monthly prices.

Transaction Fee
The amount charged per transaction. Most companies charge around $0.30. If you make 50 sales per month´┐Ż the total transaction fee would equal (0.30 x 50 = $15.00).

Gateway Processor
A gateway processor charges your customers' credit cards via the web and sends the funds to your merchant account. All plans listed on this site include an Authorize.net gateway.

Real-Time Processing
This method of credit card charging authorizes and charges the customer's credit card at the time of purchase.

Offline Processing
This method of credit card charging allows you to capture your customers' credit card information for charging at a later time. If you have an existing offline merchant account, this may be a good option for you.

Secure Socket Layer (SSL)
SSL is a secure web protocol that uses 128 bit or higher encryption to keep your customer's card number and personal information secure.
 
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