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What is the typical merchant account rate for an online business and does it matter what type of business?
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JackleneM
Peterbronz Answered question
When dicussing “standard rate” in the merchant account industry there really is no such thing as a standard rate. Rates are determined by a number of factors. The type of card accepted whether its VISA, Mastercard, Discover or American Express will effect the rate that you as a merchant pay to accept that card. Someone pays for the rewards. When you have miles or dividend cards the merchant will pay a higher rate for accepting that credit card. In General American Express cards are typically higher then a card like VISA or Mastercard. The type of business you have will also effect your rate. If you are in a business where their is a high rate of chargebacks then your rate will be higher as well. A multilevel business, gambling, pornography will all have higher rates then selling netflix movies or books from barnes and noble. Paypal and Square are newer players that do have standard rates which are between 2.75 to 3%. These are standard rates and typically you will pay more for American Express and less then a Mastercard without any rewards.
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