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Department: Merchant Account
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Start accepting credit cards for your online business today!
Visa, Master Card, American Express, and Discover
    Why?
Over 95% of online sale transactions are from credit cards.
How?
Simply apply for free online and gain approval within 48 hours.
Then What?
After approval, We'll walk you through the steps to install the required payment gateway onto your site. No experience is needed.
Price?
The merchant account price structure is fairly universal. Let us break down the costs.
1. Set-up fee: The processing fee to set-up a merchant account for your business is a one time non-refundable charge. If you're not approved there is no charge.
2. Discount rate: This is the percentage of your sale that credit card companies deduct for allowing you the privilege of accepting charges from customers. If you have a physical commercial address and will swipe the card in front of customers - your rate will be lower because this interaction is less risky than internet or mail orders. If you intend on using your merchant account strictly for online business (card not present) your discount rate will be in the highest bracket because you cannot screen customers yourself. This fee fluctuates from 2-3% of sale for Visa and Master Card. Discover Card and American Express charge slightly higher rates. Kaxy can help secure you the lowest possible rate.
3. Gateway fee: This is a monthly lease fee to process credit cards online and to access your own manager control panel. This service is excellent because your customers can purchase from your store while you may not have any staff members on hand. When people say that online stores are open all day and everyday they are really referring to this e-commerce wonder. A similar lease fee applies toward the hardware to process credit cards in house if you need this option for land stores. Monthly gateway fees are usually between $19.95-$79.95 depending on your expected sale volume or service options.
4. Transaction fee: This is a per transaction flat fee. Usually it ranges from .30 -.50. This fee wasn't designed to be a cheap profit maker for credit card companies, but rather to discourage merchants from allowing customers to charge a pack of bubble gum with a credit card. Unfortunately, this billing practice has remained to the present online era.
5. Chargeback rate: You incur a fee if a customer disputes your charge and wins. It is always possible to settle disputes, but in the event the credit card company feels you are ultimately liable - a charge may be levied against you. Normally the charge is $15.00 for sites with a good history.
Example sale: You sell an item for $20.00 to Mr. John Doe using his Visa. Assuming your discount rate is an average 2.50% and there is a .30 transaction fee charge, your profit would be $19.20.
Please note: Some merchant account providers (MAP's) try to list prices with cute deceptions. They may state in bold letters lines such as, "NO TRANSACTION FEE", but then they just bloat all your other charges. Be alert and always add up the total amount of charges and figures a MAP must disclose.
In a rush to accept credit cards without anything upfront,
Alternative?
You could always use PayPal to process your online orders. Although PayPal does have slightly higher rates than you would enjoy if you apply for your very own account.
Tip: If you batch together all daily sales toward the end of each business day, there is only one transaction fee. This tactic can help you save money although it is not required.
JCB & Diners Club?
You can apply later to accept these two, but together they account for less than 1% of all transactions. In fact, their negligent market share keeps most businesses from bothering to accept them. Anyone using either of these cards also would have a Visa or Master Card in his wallet as well. But this is up to you to accept.
Kaxy merchant services are coming soon.
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