Merchant account terminal FAQs

Posted by Leigh Jones on Monday, November 25, 2013

What is a merchant account terminal?

A merchant account terminal is a device that swipes the card that is processed through a merchant account.  A merchant account is a specific type of account that allows your company to accept several different types of payment, including credit cards, debit cards, and gift cards. The merchant account service has an existing relationship with a payment processor that will allow you to accept credit and debit cards.  Additionally, payments and fees can be easily deposited or debited from your business’ bank account with a merchant account. 

How do I use an eCommerce merchant account?

To utilize an eCommerce merchant account, you must have a payment gateway service.  A payment gateway will allow you to utilize your company’s merchant account to process debit or credit card payments online.

How much are merchant account terminal fees?

The fees charged for the use of a merchant account terminal are dependent on who your merchant account terminal provider is.  However, the most common types of fee structures can be broken down into three categories:

·         Per transaction

o   Merchant account terminal fees that are charged per transaction, or every time a customer makes a credit or debit card payment. In this scenario, businesses usually pay the qualified rate in addition to the authorization fee.

·         Recurring terminal fees

o   A recurring merchant account terminal fee would occur on a pre-determined schedule.  This fee is usually not determined by the volume of credit card transactions. In this scenario, businesses usually pay the statement fee in addition to the annual fees.

·         One-time fee

A one-time merchant account terminal fee is not charged unless a specific event happens.  In this scenario, businesses would normally only pay voice authorization fees or monthly minimums.


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