How to Avoid Chargebacks

Chargebacks can cause a great deal of trouble for a business, especially when merchant accounts initiate fees for them. Credit card processing has a wealth of benefits, but it also has complications such as consumer chargebacks. Consumers initiate chargebacks for a wide variety of reasons including fraud, attempted theft, honest mistakes and discontent. Every business […]

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Building Your Small Business

Accepting credit cards is a necessity for small businesses because it allows them to remain competitive, offer convenient payment methods to buyers and not forego a sale in the event customers come up short of cash. Understanding the world of credit card processing can seem daunting at first, but these 3 key principles help address […]

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Reading Reviews Before Selecting Your Merchant Account Provider

When looking to select a company to use as a credit card processor, it’s wise to choose one that offers all the right services at a good price. However, one should take it further, and here are three things to look at when reading reviews for a merchant services provider. Speed: Without a doubt, if […]

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All About Flagship Merchant Services

Flagship Merchant Services has been helping merchants conduct transactions online for many years. As a leader in credit card processing and merchant accounts services, Flagship Merchant Services has remained focused on giving business owners of all size the solutions they need to effectively do business completely online. How does credit card processing work? There are […]

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All About

Without a doubt, when looking to get credit cards processed, one should go with a solid, reliable and trustworthy company. When doing so, it’s easy to avoid mistakes that others suffer from. While true, one should know where to look, and is a great place to go, and here are three reasons why. Provide […]

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What is the Bankruptcy Notification Service?

Without a service, it’s hard for people to know when someone went bankrupt, and this is often a problem when dealing with merchant accounts or other financial services. For this reason, the two major worldwide credit card companies, Visa and MasterCard, have developed a service to help people track bankruptcies. With this, people can see […]

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The annual fee for the credit card processing merchant account is the fee that is charged to store that uses the credit card service. This fee pays for the service for the year, and it is separate from the fees that are charged for each transaction. Every service must charge this fee to remain in operation, but the merchants that choose these credit card processing accounts can shop for the proper annual fee.

#1: No Annual Fee

There are some merchant accounts that come with no annual fee. These accounts are often low on services, but they still allow for credit cards to be used as payment. A merchant that uses these accounts may find that they have to pay a much higher transaction fee for every credit card swipe.

#2: Low Annual Fees

Low annual fees are charged by a majority of these processing companies. The merchant pays a small fee upfront, and the merchant pays a percentage of each transaction. This is often seen as the best balance between the two fees because many people use credit cards during their shopping trips.

#3: High Annual Fees

The most sophisticated services charge very high annual fees because they offer a great number of services. These companies may offer several credit card terminals, integrated software for cash registers and special tax reporting procedures for the customer. The annual fees pay for these services, and the businesses often pay a small fee on every transaction. There is a balance here between services and transaction fees. The business that needs the extra services will be able to pay a higher annual fee to get what they need.

#4: Keeping The Account Open

The annual fee must be paid every year to keep the account open. The fee must be paid so that the credit card processing abilities can be used. A business that believes the fee is too high should look for another place to get their merchant account. The annual fee is an essential in the merchant account world, and it must be carefully considered before a business signs up for a plan.