Once a department begins to accept funds for the sale of products or services, they are considered a merchant. To accept credit cards as a method of payment, you must operate under a merchant account, referred to as a merchant id.
There are two means to operate as a merchant to receive credit card payments:
- Accepting payments online or
- Accepting payments using a credit card terminal which includes the point of sale experience where the card is present
There are several fee sources related to credit card processing:
- Merchant Services Fees
Our contracted Merchant Services manages the initiation of new merchant ids to be able to process Mastercard, Visa, American Express and Discover Card credit cards. There is an initial (one time only) set up fee to establish acceptance of Mastercard, Visa and Discover. There is no additional set up fee to establish acceptance of American Express. Merchant Services also acts as a processor for each transaction and communicates with the credit card brands to gain authorization and capture for each transaction and communicates with the acquiring bank to help settle transactions and even disputes. An interchange fee is captured and paid between banks for the acceptance of card based transactions. Interchange fees may vary, depending on the type of card presented.
- Payment Application Fees
Payment application fees are various fees that a vendor may charge to contract to use their online application to accept payments. This amount could be included in the overall contracted services annual amount or billed on an incremental basis by month and/or include a nominal amount per batch and per transaction.
- Payment Gateway Fees
Gateway fees are the costs charged by companies for access to the networks that handle the financial data processing of credit card purchases. This may include a setup, monthly maintenance and transaction fees. Selected gateway must be compatible with the payment application to communicate and execute transactions with Merchant Services.
- Credit Card Terminal and Equipment
Select credit card terminals, pin pads, POS devices, iOS equipment and printers may be purchased through KU’s designated contracted service providers based on stand-alone operation or connectivity with other payment systems. All equipment is EMV certified by Payment Card Industry Security Standards Council. Some equipment has point to point encryption
First Data FD130 (only) $375.00
First Data FD130 Duo (with pin pad) $375.00
First Data FD35 Pin Pad (only) $199.00
First Data FD400 Wireless $450.00
Ingenico iSMP TBA
Ingenico iCMP TBA
Ingenico iC250 TBA
Blue Bamboo P25i Printer TBA
iOS Devices Varies
Fees may vary depending on the application and the gateway used.
All merchant accounts, payment application systems, payment gateways and credit card equipment must be established for use through the eCommerce Committee prior to purchase.
- Setup Fee - $99.00 (one time only for each new merchant id)
- Interchange & Merchant Services Fee - % of transaction based on the type of card presented (range usually from 1.5% - 2.5%)
Determining Full Costs
More detailed discussion of fees is considered when a department meets with the eCommerce Committee to discuss direction, business processes and viable ecommerce setup for the department.