MERCHANT ACCOUNT AND CREDIT CARD PROCESSING TERMS
*Discount Rate - The discount rate is a percentage fee that is charged on each credit card transaction. Depending
upon which credit card is used the discount rate goes to Visa®, MasterCard®, American Express®, Discover® Network and your credit
card processor. The discount rate is charged on both sales and refunds. A fee charged in connection with the discount rate for Visa and MasterCard
is the Monthly Minimum. The monthly minimum for Internet merchant accounts is 2.19% or $15, whichever is greater. The monthly minimum for retail
accounts is 1.59% or $25, whichever is greater. For example, you have an internet business and process $500 for the month. ($500 x 2.19% = $10.95.)
You will be charged an additional $3.05 by your processor to meet the monthly minimum. ($10.95 + 4.05 = $15.00.) Another example for an internet merchant account is you charge $1000 for the month. ($1000 x 2.19% = $21.90). You have been charged $21.90 so you
have easily met the monthly minimum of $15.00.
It is important when shopping
for a merchant account to ask about the monthly minimum as many merchant account providers do not advertise this fee even though they charge
it.
Transaction Fee - A transaction fee is charged each time a credit card processing transaction is made.
Monthly Customer Service Fee - The credit card processing company provides customer service and technical support 24 hours a day, 365 days a year.
Payment Gateway - This fee applies only to Internet merchant accounts. The First DataSM Global Gateway charges a monthly fee. The
gateway provide a secure link from your website to the credit card processing company. With a secure gateway you are able to pass your customer's
credit card processing information securely to your credit card processor for authorization and approval. Before approval, over 100 different fraud
checks are run to help reduce merchant losses.
Wireless Access Fee - This fee applies only to wireless merchant accounts. This fee provides wireless access from the terminal
to the credit card processor to allow the transactions to be approved and run in real time.
* All equipment offers are being made by Instamerchant, LLC. Restrictions apply. Call for details.
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