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Do you want to accept credit cards for your business? If so, you should know about merchant accounts. Read on for an overview of what you should know. Learn more about iphone credit card reader, go here. 


Merchant Services Costs

Different middlemen receive a fee or percentage from each credit card transaction. These costs are usually incurred by the small business owner. There are numerous different types of fees. However, most are charged per transaction, on a recurring basis, or individually if a certain situation occurs. Find out for further details on mobile credit card processing right here.


The most visible (and often the largest) credit card cost that merchants pay comes from the periodic rate. This is the monetary percentage of each transaction that goes to the merchant account provider. The qualified rate is the lowest rate that can be assessed on a company's transactions under a given agreement. The rate usually comes with certain restrictions that must be met. If these criteria are not met, the merchant can be assessed surcharges of varying amounts or "demoted" to mid-qualified or non-qualified rates which are higher than the qualified rate.


The small business owner is also responsible for an interchange fee. The fee covers the communication networks that link the banks, credit card companies, processors, and other entities. Other costs include transaction fees (which are due each time a transaction is conducted regardless of the size) and authorization fees (which are charged whenever a business attempts to authenticate a card, even if the card is declined). There may also be monthly or annual fees associated with some merchant services accounts.


Merchant Services Transaction Information

Though most of the information mentioned so far is not relevant to the employees who actually conduct the transactions, there are some areas that a small business owner must review with his or her cashiers, clerks and salespeople. These individuals should know the difference between a consumer credit card and a debit card. Though these cards look the same, a debit card requires a Personal Identification Number (or PIN) to be entered by the cardholder, and the funds are immediately taken out of the person's bank account.  Take a look at this link for more information. 


Furthermore, a purchasing card can only be used at certain businesses (these are also known as gift cards). Also, payment acceptors must know how to perform credit card transactions other than common purchases. They must be able to issue refunds, which involves transferring funds from the merchant's account to the cardholder's account. Front-line employees should also know how to void transactions, which means cancelling purchases already received in the event of an error or a customer changing his or her mind.