Let’s look at the costs associated with your merchant account: percentage rates and regular fees.
Note: The following tariffs and commissions are approximate, at the discretion of the processor and depend on various criteria including the business model, country of incorporation, physical location, processing history, currency.
As a rule of thumb, the higher the fixed fees, the lower the discount rate. Depending on the volume you realistically expect, you should decide if it’s worthwhile for you to pay higher set-up and fixed fees in return for a better discount rate.
DISCOUNT RATE This a percentage charged on your total sales, agreed with and charged by the acquirer, starting from 2.5% for low risk and 3.5% for high risk, up to around 10% for certain high risk business.
FEE PER TRANSACTION This is a fixed fee for each transaction, agreed and charged for use of the payment gateway, fraud scrubbing services etc; starting from $0.10 USD.
ACCOUNT OPENING FEES One time set-up fee covering merchant account set-up, due diligence, technical integration etc. From $0.00 up to $2500.00 USD.
ANNUAL FEES Commission for account management charged by some providers. Always charged on set-up and each anniversary of set-up, from $0.00 up to $1,500.00 USD.
MONTHLY FEES Monthly commission for account management, from $0.00 up to $100.0 USD
CHARGEBACK FEE Penalty fee for each chargeback, imposed by the acquiring bank, typically $5.00 up to $50.00 USD.
WIRE TRANSFER FEES Fee for transferring funds from the merchant account to the bank where you wish to receive them.
CROSS BORDER FEES Charge imposed by card associations and passed on by acquirers for accepting cards that have been issued in a different country, region or currency.
ROLLING RESERVE This is a security deposit held back from your payments by the processor to protect them against possible refunds and chargebacks. Depending on the risk and business model, the rolling reserve is typically between 5% and 10% but may be 15% or even more for extra high-risk businesses. This amount is retained for 180 days, and no interest is paid. The rolling reserve is repaid to you after 180 days, for example the reserve held back in month 1 will be repaid in month 7, etc, during the entire relationship.
BANK ACCOUNT COMMISSIONS Independently of your merchant account, some acquiring banks will insist you open a regular current or checking type account with them. There may be fees for maintaining this account, as well as normal charges for wire transfers etc, usually in accordance with the bank’s standard tariff.