Merchant Account - Buyers Guide

Credit Merchant Account Terminology

Credit merchant account services, just like with any business contract, you might run into some terms that you don't know their definitions. In the world of credit merchant account services, this is extremely likely since there is a significant amount of jargon that only applies to this particular field. Here are a few of the most popular terms defined.

ISO and MSP: Independent Selling Organization and Member Service Provider.

Interchange fees: A set of fees set by the credit card organization, usually Mastercard, Visa or Discover.

Credit Card Terminal: The card terminal is an electric appliance that the credit card, debit card or gift card is swiped in and processed. These boxes can be big and bulky or small and sleek, depending on the quality of equipment you get.

ARU (Automated Response Unit): A more antiquated device that allows a merchant to make a hard copy of a credit card transaction and then call in and verify that the card is valid. It is essentially the precursor to the credit card terminal.

Payment Gateway: A way for an online based business to process credit card transactions easily and without delay via internet.

Payment Processor: A separate company that acts as a merchant service provider. Instead of going through a bank to process credit cards, a payment processor is a third party company that helps you process credit cards. It might be more expensive for a business to use a payment processor, yet it is easy to handle and not every business is authorized to open a credit merchant account.

Annual Fee: Some credit merchant account services charge an annual fee in addition to their regular fees. Make sure you fully understand the fee structure of your merchant account provider. The cost of an annual fee varies from $50 to $400.

Customer Service Fee: A small fee that covers the cost of maintenance throughout the year. It can also be called a "Maintenance Fee". The cost varies from $5 to $25 per month.

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The form was easy to fill out and took only a few minutes. It was easy for me to find the service I needed, and I quickly heard from a couple of helpful companies.

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