The True Cost of Merchant Services
A number of companies have entered the Merchant Services market as a one stop e-commerce solution, however, all is not what it seems!
The companies offer you “the chance to accept credit cards and sell your goods/service world wide in a matter of days”. Although this claim is possible, it is highly improbable. You will need to apply to your bank for an Internet Merchant account (even if you have a current Merchant account for mail order). If you do obtain the authorisation to trade on the Internet you may find the cost prohibitive to your profit margins. The company offering the one stop solution will charge you 2-4% of each deal, with a set up fee from around £500. The Merchant Services will also charge 2-3% per deal, again with a set up fee if you do not bank with their bank.
Compare Bucket Pricing and True Pricing. True Pricing was reserved for large businesses with high turnover. True Pricing is available to business of all sizes, and in the process takes the mystery out of the cost of card acceptance. If you were asked what it costs your business to accept credit cards, odds are you would not be able to give an accurate figure. All of the fees associated with processing credit cards can be very confusing. To make matters worse, Merchant Account Providers profit from making fees difficult to understand; it enables them to charge more.
True pricing appears to be the lowest cost option. Take care to match up your business needs with the service you choose. If you already have a PDQ machine for procesessing payments and require merchant cash advances in England and Wales you may try Ashley Retail Finance
