If you have ever set up processing through Discover in the past, you know that you had to apply for a Discover account which was separate from your Visa/Mastercard merchant account. It was also billed differently, usually at a higher rate than your other transactions. But recently, this year, that has all changed.
Discover is now mostly hands off when it comes to setting up on your merchant account. Now, you acquire it by simply checking off the little box on your merchant application. But what about the rates?
More good news! The rates are now exactly the same as your discount rate and transaction fee. Also, there is no longer an activation fee for your first transaction. This means more savings for you and probably more business for Discover since more merchants will be signing up for their service.
What about American Express?
Currently American Express still charges its own rate and transaction fee and also requires a $25.00 first time activation fee. However, it appears that it will be following suite with Discover to at least some degree in Fall of 2008.
So what does this mean to you?
This means you should definitely heck off the discover box on your merchant application. It is at no extra expense to you and will only increase the payment options of your customer base.
