Credit Card Processing

• Merchant account costs for retailers
• Health care merchant account costs

We regularly survey BuyerZone users to ask how their purchases went. The following responses represent a sampling of actual rates paid for retail and health care merchant accounts.

All types of businesses rely on merchant accounts to make purchasing more convenient for their customers. Vendors typically provide the equipment at a very low cost or for free, and businesses pay a percentage on each transaction (known as the discount rate.)

Both retail and health care businesses can negotiate better discount rates depending on their volume of sales, but it's typically easier for retail businesses. While health care businesses don't work with as much volume as retail stores, they can usually negotiate for lower set up and monthly fees to compensate for a higher discount rate.

Retail and health care businesses can also obtain better discount rates with long-term contracts. Make sure to carefully review the agreement for hidden charges. In addition to transaction fees and equipment costs, look for other fees such as monthly statements, technical support, and charges for each transaction. Avoid contracts that charge big penalties if you decide to switch providers.

Merchant account costs for retailers

• "$59.95/annual fee - 2.9% on all cards - $.30/transaction - $8 statement fee (optional). Inactive fee only after 12 months ($5-$15) - no monthly minimums. No other fees and no equipment needed."

  - Business service provider, Shakopee, Minnesota

• "Discount rate -1.96%, contract term - 3 years, $.20/transaction fee, $25 application fee, $649 for an Omni 3730 terminal."

  - Golf course owner, Chetek, Wisconsin

• "Hardware - $395, tech support - $10, monthly charge - 2.65% of sales."

  - Business owner, Dunbar, West Virginia

• "Wireless terminal for $695, 1.69% rate plus $.20, 36-month contract and the setup fee was waived. $7.50/month statement fee."

  - Florist, Medical Lake, Washington

• "1.59% discount fee for credit and debit cards, $.19 transaction fee, $7.50 monthly statement fee. Service came with a programmed credit card terminal, no application fee, no cancellation fee, no monthly minimum."

  - Restaurant owner, McFarland, Wisconsin

• "1.69% w/ $0.23/action. 1.69% non-qualified. 1.69% non-PIN debits. No contract & no monthly fees. No setup fees or termination fees. Excellent program documentation and customer service."

  - Flight trainer, Nampa, Idaho

• "$687 for the Nurit 8000 GPRS wireless terminal (negotiated down from $799.) $7.50/month statement fee, $15/month wireless fee, 1.59% swiped rate, $0.19/transaction."

  - Retail CEO, Glendale, California

• "2.32% per transaction plus $0.19 per transaction plus $0.19 per batch. $10 per month statement fee."

  - Manufacturer, Chimacum, Washington

• "Equipment $500, setup $50, various rates around 1.5% for processing services. $12.75 monthly includes assigned relationship manager, online access, and monitoring services. Purchased services because of competitive pricing and excellent support model."

  - Financial services provider, Appleton, Wisconsin

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Health care merchant account costs

• "No charge for gateway. $18 per month and $0.25 per transaction. No charge for imprinter."

  - Health care manager, Newton Center, Massachusetts

• "Base rate of 2.09% with no per transaction fees. $5 statement fees. Internet transactions to replace rental terminal."

  - Dentist, Albuquerque, New Mexico

• "$8 monthly statement fee, 1.79% plus $.20 transaction fee. No monthly minimum required."

  - Health Care CEO, Springfield, Missouri

• "$100 for credit card processing terminal. 2.2% fee for transactions."

  - Orthopedics, Dublin, Virginia

• "Hypercom T7P - $110. Discount rate - 1.75%. Debit cards 1.59%; check cards 1.29%."

  - Dentist, Waldwick, New Jersey

• "1.69% for credit card, $.25 transaction fee, $.15 transaction fee for debit, $250 equipment. 1% for checks with $.15 transaction fee."

  - Cardiologist, Atlanta, Georgia

• "Monthly minimum $20; $17/month plus $10/month in fees (for a 'virtual terminal' arrangement through the Internet.)"

  - Dentist, Fond du Lac, Wisconsin

• "$7.95 per account, no monthly minimum, $.21 per transaction, 1.69% of cost for MC/VISA. Two terminals $249 (new)/$209 (refurbished), no contracts."

  - Health care specialist, Naperville, Illinois

• "1.39% debit/ 1.69% credit. $10 monthly fee. Free equipment and paper products."

  - Rehabilitation center, Rochester, Minnesota

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Want more information on choosing a merchant account provider? Read our Credit Card Processing Buyer's Guide.

If you already have a merchant account and you're interested in purchasing a credit card terminal, request a free credit card terminal quote today or instantly compare merchant account providers today.

Information was provided by BuyerZone.com users. Quotes have been edited for clarity only.