The merchant account services that you use will send you a monthly bill for their merchant service. This bill will be the combined fee that includes the rent of the terminal, percentage charge for each sale, transaction fees, annual fees, charges for the card processing software, and extra charges, if any, for the rectification or enquiries that had to be done on certain transactions. Even those merchant account services that offer a discount, will be offering a discount on the sum total of this amount. Or there could be services that offer some part of their services free. For example, there could be a merchant service that does not charge any transaction fees, or another service that does not charge annual fees. On the face of it these offers may look attractive but quite often, in effect, there may not be any moneysaving involved in it.
This is because you will be incurring disproportionate charges for some of the services involved in your merchant service. The type of business you run, and the preferences of your customers, can easily tilt the balance. For example, merchant account services have different card processing charges for credit cards of different companies. If a majority of your customers are using a credit card that is rated expensively by your merchant service, the charges are that arena is bound to be high. While you cannot change your customers user preferences, you will be able to balance the merchant account services cost better if you can find out in which area you are being charged more. If your service charges are persistently high in that area, you should ideally seek a package where they offer a discount in that section and not a discount on the total.
Your charges might also vary depending on whether your customers are using more of debit cards or credit cards, since many merchant account services have different charges for both. Again, if this is the factor that is affecting the total, you should try to get a discount in that area or try to alter anything in your business routine that could bring about a change in that practice. Penalties are quite often a part of the monthly bill that your merchant account services will send you. This could happen if the customers have used outdated cards or if the card number or card address have been typed wrongly. Checking and counter verifying these things as much as possible before sending them to the merchant service will reduce the bill amount.
Now and then merchant account services change their charges based on the volume of the business that you offer them. You should keep track of these changes and apply for those, which could bring down you merchant service charge because your business volume is also likely to fluctuate now and then. If you balance yours ups and downs with up and down offers, you may be able to keep your merchant service charges within reasonable limits.