Merchant Account Rate
why are there different discount rates?
why are there different discount rates for credit card processing? I think I want to avail of a merchant account for my business but this whole discount rate and other rates are confusing me. please enlighten me. thanks.
A discount rate is a percantage charged for each transaction that passes through the credit card processing company. For an order of $100 given that your discount rate is 3%, the credit card processing company will deduct $3.
For card not present transactions, where the risk of fraud is higher, the discount rate is higher, as compared to card present transactions.
If you’re looking for a merchant account, you can try
http://www.freemerchantaccount.biz
i’ve tried it before and they provide you with a merchant account, quick & hassle-free.
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