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Why Merchant Account Charges Credit Card Processing Fees

Setting up a merchant account can bring many benefits to a businessman. Customers appreciate the ability to take credit card payments. One of the benefits is being able to keep track of sales transactions. These conveniences are not free for the merchant or his clients. 

This service is provided by a provider and there will be charges.You can read more about these service charges at before opening your merchant account. In a merchant account the authorization fee is one of the credit card processing fees required to keep a merchant account in operation. 

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This fee is charged to merchants when a transaction is sent to the card-issuing banks. To keep the merchant account active, there will be a lot of fees. Sometimes this fee is confused with Transaction Free, which is actually quite different. 

Both transaction fees and authorization are collected by the merchant services provider and not the bank and given to the merchant. Merchants will also have to pay the statement fee on a monthly basis. This fee is listed on the merchant's monthly statements or records of all transactions that took place within the month. 

Merchant service providers may require their clients to pay certain fees depending upon the amount of transactions. If the merchant cannot meet this obligation, he will have to pay the remaining amount in order to reach the monthly minimum.Merchant banks often require merchants to set aside a certain percentage of their accounts for these fees.