Three-Year Agreement
The typical American Merchants Inc. contract extends over a three-year period through First Data (now Fiserv), reflecting the terms commonly associated with First Data (Fiserv) due to American Merchants Inc. acting as a reseller. While specific rates and transaction fees are not detailed within the contract, they are expected to be in line with First Data (Fiserv) standards. Nevertheless, as a reseller, American Merchants Inc. may adjust the standard First Data (Fiserv) contract terms.
First Data (Fiserv) typically engages in multi-year contracts that include an early termination fee of $495, a monthly PCI compliance fee of $19.95, and employs tiered pricing. Transaction rates are set at 2.69% plus $0.19 for swiped transactions and 3.69% plus $0.19 for keyed transactions for businesses processing up to $50,000 monthly. For those exceeding $50,000 in monthly transactions, the rates adjust to 2.29% plus $0.19 and 3.29% plus $0.19, respectively. Also noteworthy is the inclusion of non-cancellable, long-term equipment leases through First Data Global Leasing.
Virtual Terminal and Payment Gateway Pricing
American Merchants Inc. promotes its virtual terminal and payment gateway services as part of its e-commerce solutions, though specifics regarding pricing for these services are not publicly disclosed. Generally, additional charges, such as gateway fees, technical support fees, batch fees, and other transaction rates, are applicable to these e-commerce services.
Avoid Equipment Leases
Review of the documentation indicates standard contract terms are utilized by American Merchants Inc., with the presence of an early termination fee (ETF) likely, though not explicitly mentioned in the provided guide. The equipment lease, facilitated through First Data Global Leasing, constitutes a long-term, non-cancellable commitment, potentially exceeding the term of the merchant account agreement. We generally advise against signing long-term equipment leases when direct purchase is feasible, especially considering the availability of credit card terminals for under $500. Accordingly, our evaluation of the company’s approach in this area is adjusted to reflect a “B” rating.
