Application & Set up Fee
Initial
fee paid to merchant service provider for establishment of account, processing
and reporting tools & capabilities.
Discount Rate
The
percentage of the transaction that the merchant is charged by the merchant
service provider for facilitating a credit card transaction.Example: ( 2.35% of $100 = $2.35 )
Transaction Fee
Small
charge paid to the "processing network" (e.g., Visa/MasterCard)
for use of their system, for each transaction processed.Example: ( 2.35% of $100 = $2.35 + .25 cents for the transaction
= $2.60 )
Minimum Monthly Fee
Merchants
pay for credit card service on a per transaction basis, through a combination
of transaction fees and discount rate charges. Generally, based on normal
business volume, these transaction-related charges cover the minimum monthly
fee.
Example: ( 2.35% of $100 = $2.35 Minimum
is $20 - $2.35 = $17.65 )
Monthly Service & Statement
Fee
Monthly
service charge paid to merchant service providers for statement preparation,
reports and 24/7 technical support.
Monthly Gateway Fee
A
monthly service fee charged for using secured processing fiber-optic lines
to complete transactions immediately in encrypted, protected code.
