IMS of NMS

When selecting a merchant processing company read and understand all terms and conditions of your contract before making a buying decision. All terms and conditions should be clearly and conspicuously displayed. There should be no blank spaces left on your contract, and you should be given a copy immediately. Some companies may even require an up front application fee. This fee, supposedly, is to cover their costs for processing your application in case you choose not to open an internet merchant account.

Find out how often your payout will be deposited into your account, and if there is a rolling reserve. Ask about your discount rate, or the percentage paid to the credit card company for each transaction. Usually, the discount rate will be between 2 and 4 percent. Some contracts may provide the option of an ongoing fixed fee. Usually between $0.20 and $0.30, the fixed transaction fee is the fixed fee portion of each sale. Unlike the discount rate, the fixed transaction fee is the same for every transaction. Be sure a separate rate is quoted for internet sales, as these are treated differently than sales at a traditional retailer. Find out if there is a monthly processing minimum, and if so, what the minimum is. A termination fee can apply if you cancel your merchant account within a specified period of time (usually within one year). But some service providers require a three year commitment.