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.