Application/Setup Fee - This fee is a one time cost, and usually ranges from $100-$200, but can vary greatly depending on the provider. Almost all merchant accounts charge this fee, but some integrated solutions may waive the setup fee.

Discount Rate - This fee is usually a percentage of the transaction amount. The average real-time processing rate is around 2.35%. For card-present transactions (traditional retail stores, etc.) the rate averages around 1.59%-1.89%. The discount rate is always taken off the top along with the transaction fees before any money is deposited into your account.

Transaction Fee - Each time you process and charge a customer's credit card, there is a transaction fee involved. This fee is meant to pay for the network and computers required to process the transaction and is common to most merchant accounts. Providers may charge anywhere from 20 to 50 cents per transaction.

Statement Fee - Depending on how your account is set up, your bank and/or your payment processor will send you a monthly statement detailing the transactions and deposits made into your account during the month. This fee may vary from provider to provider, but is usually set around $10 per month.

Monthly Minimum Fee - This is the minimum amount you will be charged each month by your Merchant Provider. This fee is usually imposed only if your credit card transactions and fees don't reach the specified minimum for the month. The majority of merchant providers have a set monthly minimum fee, generally around $25-$30. Keep in mind that rates and fees may vary from those outlined here, depending on individual merchant account terms. This list is meant only as a guideline for comparing merchant accounts. Refer to the terms and conditions of your own merchant account contract for complete information. We've also put together a list of additional fees you may run into when shopping for merchant accounts, along with some excessive fees you'll want to avoid. Learn more.