Since our company works with a wide variety of businesses, each with unique requirements, quoting specific rates on a website is challenging. Yet, we understand that visitors to the site like to have an idea of what rates will be.
The following is provided as a general guideline.
Rates may vary depending upon the specifics of your business.
|High Risk Merchant Accounts Domestic||
||2.95 – 4.95%|
|High Risk Merchant Accounts International||
|International/Offshore Merchant Accounts||
||2.5 – 5.5%|
||2.5% – 4.5%|
Factors that Affect Rate Structure
Exact rates are set after a complete underwriting package is received and underwritten. Three factors that affect rates are:
- Processing History. Processing history shows the volume of processing, returns, and chargebacks. It demonstrates a merchant’s ability to successfully manage an account.
- Business Financials. Generally required for high volume accounts, financials show the flow of money in and out of the business. This helps determine the risk level associated with a particular merchant.
- Industry Type. Certain industries are automatically classified as higher risk because of the statistically greater likelihood of chargebacks. Good processing history and financial statements go a long way in mitigating perceived risk during the underwriting process.
A merchant account is at its core a short-term line of credit extended to a business. Once you have established processing history with the banks, initial rates & reserves can be renegotiated and reduced.