Gun Dealer Merchant Account Fees

Gun Dealer Merchant Account fees and charges

Before you consider setting up a Gun Dealer Merchant Account to allow customers to use credit and debit cards, you should be aware that Gun Dealer Merchant Accounts are not free, and the reason is simple. A Gun Dealer Merchant Account actively manages, manipulates and verifies some of the major aspects of your credit card or online transaction. But before we go any further the first thing to take a note of is, that not all goods are treated equally by credit card companies, based on the type of merchandise, the nature of the gateway used and the brand of the credit card used, there are roughly 130 major categories into which goods and services are divided. However to avoid complication goods are usually divided into 3 tiers and recently into 6 tiers.

Now that you have a general idea of what one means by 'tiers' into which goods fall, it will be simpler to understand the various fess that are usually charged by Gun Dealer Merchant Accounts.

a) Setup Fee

As the name suggests, the setup fee is the basic fees charged to create a new Gun Dealer Merchant Account. Not all Gun Dealer Merchant Accounts charge a setup fee, particularly high risk Gun Dealer Merchant Accounts that handle a large variety of goods, currencies and volume, usually have very little or no setup fees. In any case, you should confirm with your Gun Dealer Merchant Account company if there are setup charges involved.

b) Interchange based fees and Authorization fee

The interchange fees is based on numerous criteria like which category the transaction falls into, an American Express card keyed into a computer and a visa card used online may fall into different categories even if they are purchasing the same item. The interchange fees is actually deducted when merchant requests payment against the transactions made, and can be loosely termed as the processing fees for fund transfer.

Authorization fee is charged every time a transaction takes place, even if a transaction is declined, this fee is charged for utilising the payment gateway of the company involved. Authorization fees are usually a percentage of the transaction, so if a transaction for $100 is carried out, then a 2.5% transaction fee would mean a deduction of $2.50 from the funds when you receive them. Usually transaction fees are between 2-5%, depending on the credit card company.

c) Other fees

In addition to the basic fees that have been mentioned above, there could be additional fees that are applicable based on the type of Gun Dealer Merchant Account you hold, and also on the volume of transaction. The two fees that are usually charged are the monthly charge for using the service, this depends from company to company, there are also additional fees like the monthly statement fee (charges that are associated with providing a printed statement of all transactions carried out in the month), the other important fees that one should be aware of is the minimum amount fees, this is the minimum fees that the merchant pays regardless of the volume of the transaction carried out. Remember all fees and charges, are clearly mentioned in the paper work.