Top High Risk Merchant Account Fees for Businesses

It can sometimes be difficult to understand the terminology and information associated with merchant accounts. This is the reason why it is important to know everything about a merchant account before acquiring one. You need to understand the amount of money you are supposed to pay monthly, the costs that show up on your transaction statement, and many more.

Remember that a merchant account can allow you to accept debit cards or credit cards. Ideally, the account service provider tends to regularly deposit the money they charge into the merchant’s bank account. This service provider may charge a fee for purchases or even pass on the service fees it incurs. There are different fees that a merchant must pay. This article discusses the main merchant account fees for businesses.

payment methods

As a business owner, choosing the best way you want your customers to pay you for the services and products you provide is crucial. The way you get paid can affect your funding and profitability. Therefore, you need to determine the payment methods that are right for your business operations and they should be convenient for your customers.

When considering payment methods, you should think about the costs associated with the payment process, the delays that occur in getting the money into your bank account, and the administration fees. Here are some of the payment methods to consider:


The advantage of dealing with cash is that it is simple and there are no processing costs. Many businesses are starting to operate by accepting cash only, especially small businesses that sell low cost products. Cash leaves no trace, so you benefit from better security and higher administrative costs.

The best way to manage cash is to have a separate record so that you can determine how much money you have. You also need to spend time counting money to make sure you have the right money on hand. To make sure that the money is safe, you must have a safe deposit box to keep your money.

Debit cards

Many customers love to use debit cards, and they are convenient for both customers and merchants. Along with debit cards, they are reliable and allow instant payment.

The fees for debit cards can be quite low compared to credit cards, especially for high purchases. Best of all, the administration cost can also be low, and you can choose to have software to import transactions using an accounting application.

Credit card

Many merchants find that credit cards can be more expensive than debit cards, although they are important because some customers prefer them. Customers don’t need to pay high-risk merchant services or credit card companies immediately after using them to make purchases. Some credit card companies even offer reward points or other incentives for using them.

Remember that merchants have to pay a processing fee. And, many merchant credit card accounts tend to have various fees that you have to pay. In addition to the monthly fees for account administration and rental of the card reader, you may also face several other fees for certain transactions. In addition, merchants may incur costs for complying with certain private laws regarding customer information.


There are many risks involved in accepting checks. The good thing is that the check processing costs are quite low and they have a straightforward administration process. Indeed, a check may appear as a separate transaction on the bank account. The right way to reduce risk is to make sure you have a check verification system in your business to scan the check. This system can also send information to your customers’ bank accounts for immediate processing.

Fees associated with a merchant account

As explained earlier, there are several fees associated with a merchant account. Here are some of them:

Set-up costs

The first step your business needs to take when a service provider accepts you as a merchant is to make sure that you pay a fee called a setup fee. It should be noted that the fees may vary depending on the service provider. Some merchant service providers may reduce or even waive these fees. However, many merchant service providers typically replace the initial fee with an annual fee or a monthly fee.

You should also read the contract properly to find out the merchant account termination fees. Some merchant service providers can charge a lot of money when they terminate a contract, so you need to make sure you choose the one that offers an affordable termination fee.


When it comes to accepting a credit card, the first step is usually to enter the credit card information. Retail businesses can provide terminals that you need to rent or buy, but there is a flat fee per month. If you have an online business, you can have a shopping cart designed to save customers’ credit card data.

Systems can vary widely in terms of cost, so be sure to shop around before purchasing one. Keep in mind that the prices of online ecommerce systems can vary depending on the volume you expect. With higher price and volume systems, you should expect a low processing cost. There are also many vendors who may charge an additional processing fee per sale or even a flat fee. It is worth that you know the SERP for your site to rank well.


Merchant account service providers tend to pass the credit card data they capture to the card processing network. These networks refer to the key partners with which these credit card companies work. Hence, they may charge a discount fee and even add additional fixed fee. This discount rate may include a small percentage and a few extras for network access, security rating, and interchange fees. The good news is that a discount rate that applies to a non-credit card transaction like a debit card can be quite low.

Importantly, when you add all of those fees together, especially for a small business that has low order volumes, there is an affordable cost when it comes to credit card fees. Even a fixed monthly fee can also be fair, which means you should try to get a merchant account to improve your business.

Interesting related article: “What is a merchant account and why is it important?” “