How much does a credit card service charge?

  Typical credit card service charges are something like this:
  • $75.00 to $250.00 Setup fee
  • $75.00 Site inspection (photo of your place of business) Not always required.
  • $600.00 Software (often available for monthly lease) Some services provide free software. Note that the lease is 100% tax deductable as a business expense.
  • A per transaction charge. This charge is higher for telephone and internet sales, because there is no signature on paper, so it is considered higher risk. This charge is called the 'discount rate'. Typical discount rates are 1.75% for retail and 2.25% for phone/internet. In addition to the discount rate, another 20 to 30 cents per transaction is often charged.
  • Some services have minimum monthly fees in the $35.00 range.