Get Out of the Dark: Know the Hidden Offshore Merchant Account Fees

When it comes to money matters, follow the golden rule: verify. The same goes with offshore merchant account fees , verify before you say yes and sign your name into any contract given to you.

Knowing if the fees can be really tricky. There are charges that go unnoticed or are deliberately hidden to lure you into a false sense of security. Knowledge of these “kept” fees is an effective way to spare you the shock of a high offshore merchant account monthly statement.

Dare to ask

When you're face to face with your offshore merchant account provider, never be afraid to throw in questions about the charges included in the contract. Don't let the meeting end if you still have bugs circling in your stomach, so to speak. Ask the four W's:

● What are these fees?
● When are they going to be charged?
● Why are they being charged?
● Where are they going to be put?

Asking will never hurt, better to have asked than knowing nothing at all. Check out the whole article for more information:

Get Out of the Dark: Know the Hidden Offshore Merchant Account Fees

Less is More: Achieving Quality with your Low-Cost Offshore Merchant Account

So you thought you got the best deal in your offshore merchant account? Think again.


Hey, I'm not trying to spoil your fun here. Just making sure you're in good hands. Ok, your discount rates are lower, you have low minimum fees, you pay lower than the industry-dictated rates. That's good, right? Or, it isn't?



All or nothing

Let's start with the fees that you are required to pay when you set up your offshore merchant account. You have your:

• Application Fee,
  
• SetupFee,
  
• Programming Fee,
  
• Annual Fee,
  
• Monthly Maintenance Fee,
  
• Overlimit Fee,
• GatewaySetup,
  
• Transaction Fee,
  
• Retail Swipe Software fees,
  
• Check-by-phone/fax PC software fee,
  
• Web Shopping Cart fee,
  
• Discount Rate fee,
  
• Address Verification (AVS) Fee,
• Statement Fee
  

Whoa, that's a lot!

So these charges are in your bill. For the industry rates, see this recent article, Paying you offshore merchant account dues.

Ask yourself, what ultimate purposes do they serve?

To learn more about the significance of low cost offshore merchant accounts read the whole article :
Less is More: Achieving Quality with your Low-Cost Offshore Merchant Account

Paying your Offshore Merchant Account Dues

Setting up an offshore merchant account not only involves paperwork but also certain fees as well. It would be ideal if there is such a set up that is virtually free, which some merchant account providers do offer. But for offshore merchant accounts, there will always be fees involved.


There are a great deal of hesitation on merchants' minds to set up offshore, one of the reasons behind the doubts is the notion that there are ”hidden” fees in the contracts for offshore merchant accounts. What happens in this scenario is that you'll be introduced to a list of rates that you'll sign up for because you have found them to be reasonable. But once the bill comes in, you'll see a number of additional fees in small amounts but when added all together have actually eaten a considerable percentage of the amount you need to pay for the month. This can be really frustrating, isn't it?


So, to assist you in this setback, provided are standard fees that merchant account providers standardly offer in setting up an offshore merchant account:

●Application Fee

●Setup Fee

●Programming Fee

●Annual Fee

●Monthly Maintenance Fee

●Overlimit Fee

●Gateway Setup

●Transaction Fee

●Retail Swipe Software fees

●Check-by-phone/fax PC software fee

●Web Shopping Cart fee

●Discount Rate fee

●Address Verification (AVS) Fee

●Statement Fee


How you are charged

Application fees are rarely charged nowadays. This is so because of the growing competition among merchant account providers. Zero application fees are the one of the marketing strategies to attract clients. But, just to give you a head start, industry rate for application fees ranges from $75 - $125.


Setup fees are also a thing of the past. Most providers don't charge this anymore also as a part of the package to keep clients coming in. Industry rate is from $50 - $150.


Programming fees are applied when you want to install a software or terminal. Most providers don't charge this anymore as programming fees are considered to be part of the set up process. Industry rate is $50 - $95.


Annual fees serves as a membership fee in certain ways. By the book, purpose is for the maintenance of the account. But it's now also being taken out of the charges as part of attracting potential clients and keep the current ones in the circle. Industry rate is from maximum of $125.


Monthly maintenance fees can be regarded as the other option for annual fee. This is a choice of the merchant account holder if they want to pay the whole dues every year or divide the amount by 12. but in this day and age, monthly maintenance fees are also being taken out to promote client loyalty. Industry rate is up to $10.


Overlimit fees are charged when the account exceeds its limit. The industry rate varies because the overlimit amounts are grouped with the corresponding penalties. But this fee is also not charged anymore as part of efforts to boost client patronage.


Payment gateway setup fee if for the the installation of the payment gateway that is critical to your offshore merchant account. Payment gateway receives the credit card information of the your customers. This is also being taken out of the bill as it is regarded as part of the setup process. Industry rate is $99 - $299


Transaction fees are the fees charged by the processor for every credit card transaction. This is charged even if the transaction was approved or declined. 20 – 30 cents is the charged for every transaction made either by swiping, keying, over the internet or mail-order-telephone-order (MOTO).


Retail swipe software is a credt card processing software solution. This serves as an wireless terminal if you have a PC or a laptop with an internet connection. You can print out receipt real-time from top-of-the-line retail swipe softwares available in the market. For better client patronage, most merchant account providers are also charging zero for this service. Industry rate is $175 - $395.


Check-by-phone/fax PC software fee are charged when payments using a check are made over the phone, or send by fax or electronic check payments. This is still done, but rarely. For better efficiency and security, online credit card transactions are preferred. Plus, currently, there is no charge for this service as well. Just so you know, industry rate is $149 per month.


A web shopping cart fee is for the use and maintenance of your online shopping cart. Ofcourse, when you have an offshore merchant account, you can also enjoy the luxury of selling your products and services online, and with a shopping cart, you have global market. But this fee is also being charged free as well, for better client loyalty.


The discount rate fee is the percentage charged for each transaction that the processing company (merchant account provider) charges to manage the transactions for you, either swiped, over the internet and MOTO.


The Address Verification System is a technology that double-checks the validity of the address that your customers enter for product shipping. What this system does is verify and compare the address keyed in with the address registered in the customer's credit card issuer. Industry rate is from $5 to $10.


The statement fee is the charge for the production and mailing of your monthly statements. Your monthly bills as an offshore merchant account holder includes all the deposits in the account, total of volume sales, and other charges for the month. Now, this fee is also free of charge for improving customer service. But industry rate is $10- $15 per monthly statement.


What to look forward to

Most of the offshore merchant account fees are now taken out to attract prospective offshore merchant clients and for to keep the current ones happy and satisfied. Some even have risk-free trial periods or offer no fees at all at the initial setup, but charge little for the crucial services which is understandable considering that every business, no matter what nature it is, needs financial resources to stay afloat. Taking out some offshore merchant account fees is part and parcel of staying in the competitive arena. Just always know your options as an offshore merchant account holder, consult if you can' fully comprehend, and weigh all the factors. Lastly, there will always be fees, just know which ones are really worth paying for.