Will I incur any charges for signing up to a MasterCard merchant account
With the state of the economy on everyone’s mind we are all looking for ways we can save money. Often it is the merchant who is left out of the benefits and incentives and money saving deals; in fact, it is often the merchant who absorbs the costs of incentives and deals. Finding places that can keep the merchant’s cost low is important in any economy but more so now more than ever. Understanding all the financial aspects of the cost incurred when signing up for a MasterCard merchant account will help you to make the best financial decisions for your business.
There are costs involved when opening a merchant account from any financial institute as well as fees; however, they will very with each provider. Be sure to look for hidden fees that can drive up your monthly charges making it difficult for you to even turn a profit; particularly if you are just starting your business.
There is a long list of possible fees as well as fees that are hidden behind large incentive ads to lead you to sign with a particular company. Be sure you look over the contract well before signing with a company. Look for the following fees that are often hidden from your attention and many of which are un-necessary:
- Chargeback Fees
- Retrieval Fees
- Termination Fees
- Gateway Fees
- Hidden Set-up Charges
- Batch Fees
- Cancellation Fees
- Minimum Fees
- Pass Through Fees
- Over Limit Fees
- Voice Authorization Fees
- Non-Sufficient Funds Fees
- Bank Set-up Fees
- Daily Close-out Fees
- Software Fees
- Licensing Fees
- Annual Fees
- Statement Fees
- Customer Support Fees
- Technical Support Fees
The more typical costs and fees involved with a MasterCard merchant account are in the processing and include per transaction fee, batch closing fee, monthly statement fee, and a chargeback fee. Additional fees that may apply are application fees, termination fees, monthly minimum fees and gateway access fees. Account providers will have varied incentives and offers and terms so it is always a good idea to shop around for the best deal. Beware of the provider who seems to be offering too good of a deal or too high of an incentive; the hidden fees may well make up for any financial savings offered.
There are a number of incentives a provider will offer that you as a merchant should look out for. Pay close attention to the terms and look for hidden fees if you see ads such as the following:
- $500 cash reward if you find a better deal. Look closely at the fine print in this offer, often the reward is only given when you sign up with them and will result in no savings at all.
- No Set-up Fee. Look at the terminology. The fee may instead be called a ‘real time fee’, ‘software fee’, ‘gateway fee’ or ‘virtual terminal fee’.
- Free Merchant Account. Nothing is free and you can certainly expect hidden fees and other costs. The provider is a business and is in business to make money; no merchant account provider is a ‘not for profit’.
- No Business License or Tax Returns Required. All banks require this type of information and a provider who does not provide this to the bank will be out of business quickly.
MasterCard regulations require that a company provides the name of the sponsor bank if the name MasterCard is mentioned anywhere on the website or advertisement.
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