FAQ

Merchant Account Fees

Q: What are One Time Fees
A: There are frequently fees charged for getting established with a merchant account. They may be called Application Fees, Setup Fees, or Gateway Setup Fees, but they all represent the cost to get started with your merchant account. You may also need to pay for the software or equipment needed to process your transactions. This fee might be an ongoing monthly fee if you sign up for a web-hosted solution, or if equipment is leased.

Q: What are Monthly Account Fees?
A: Almost all merchant accounts will have some type of monthly fee. It may be called a statement fee, account fee, or reports fee, but it is simply an ongoing cost of having the account available. Some accounts have multiple monthly charges that typically range from $10-30/month. Other accounts may impose a monthly minimum fee instead of/or in addition to the monthly fees.

Q: What are Transaction Fees & Discount Rate?
A: Usually, there are two components to the cost of processing each transaction: a per item fee (usually between $0.10 and $0.40) and a fee that is a percentage of the transaction amount, called a “Discount Rate.”

The discount rate can vary substantially from one processor to another. It commonly is between 1.5 – 3.5%, based on the type of credit card and the method of processing used. For example, if the discount rate offered is 3%, and you receive a payment of $100 you will be charged $3 as the processing fee. Most of this money goes to the card issuing company such as Visa, MasterCard, etc. (they call this an ‘Interchange’ fee).

It is challenging and nearly impossible to compare these fees since most merchant statements do not present the fees very simply. Sometimes the discount rates are broken down into an Interchange rate and an additional charge from the company that facilitates and sends the transactions to the various credit card companies.

Furthermore, there are many different rates that can apply to a transaction, depending on the type of card used. This is not just if it is Visa, MasterCard, or Discover, but also if it is a Rewards card, Corporate card, Debit card, etc. Other factors affecting this fee include how the transaction is being processed (swiped, keyed in), and even if it passes certain fraud prevention tests such as “Does the address associated with the transaction match the billing address of the credit card?” Credit card companies say that the different rates reflect the different levels of ‘risk’ for that company. They may feel, for instance, that there is a greater risk to transactions done without the physical card being swiped.

Online Transactions

Q: How can I accept credit cards online?
A: Register with ahmb.net. To use our Charge-Now service, you will also need a credit card merchant account. Once your merchant account is established, setup can be completed quickly. Depending your website it is simple to set up our gateway to handle transactions.

Q: What are the advantages of real-time authorizations?
A: Instead of obtaining a customer’s credit card information online and then processing it offline, transactions are authorized immediately.

Q: Does a customer need to belong to an online bank to use this system?
A: No. Your customers don’t need to meet any special requirements.

Q: Can I post a credit to a customer’s credit card?
A: Yes. ahmb.net has designed RediCharge to be a fully functional point-of-sale (POS) service. An online interface is provided, enabling you to post credits to a customers’ accounts. This function is performed on our secure server in a password-protected environment.

General

Q: What information do customers provide for order processing?
A: For checks: Customers provide name, address, phone number, and bank account routing number. They can include an email address if applicable.

For cards: Customers provide name, address, phone number, credit card number, and credit card expiration date.

Q: How does a customer keep track of the transaction?
A: An email notification is sent to customers with complete order details. The transaction appears on their monthly statement.

Q: Can ahmb.net help me obtain a credit card merchant account?
A: Yes. Please see our online merchant account information.

Q: Do I need a credit card terminal?
A: No. Once you register with ahmb.net, there is no need to lease or buy credit card processing hardware or install any software.

Q: How do I get paid?
A: Funds are deposited directly into your bank account. Depending on your type of business next day funds may be available.

If you are using our Check products funds are transferred via ACH from your customer’s bank account into your own account.