Merchant Account Rates Explained: Do You Know How Much Each Credit Card Transaction Really Costs?
THE TWO COMPONENTS OF A CREDIT/DEBIT CARD TRANSACTION
Each time a merchant process a credit or debit card transaction, she is charged an inquiry fee and a percentage of the total transaction. The inquiry fee is a flat amount, typically between 20 cents and 35 cents. The percentage charged, is typically called your “credit card rate” and it is variable based on the type of transaction and the type of card used.
CREDIT CARD RATE CATEGORIES
Credit Card Rates are typically broken into two categories:
Card Present (where the card is physically swiped through a credit card terminal)–The lowest rates are typically applied to card-present transactions.
Card Not Present (any type of transaction where the card cannot be swiped)–This type of transaction is also referred to as MOTO (mail order/telephone order). All transactions where a credit card is not physically swiped through a terminal, including internet transactions, phone transactions, or credit-card numbers keyed into a terminal, fall into this category.
CREDIT...
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