Is the discount rate for swipe transactions the same as telephone sales?
No retail credit card sales require a signature at the time of sale. The customer usually receives the product or service at that time. This is the type of transaction where the merchant gets the best discount rates. When you see low rates offered, it is for this type of transaction. Telephone or mail orders are charged a higher discount rate because of the increased risk that the customer will not receive the product or the possibility of a fraudulent sale. You should be sure the agent you choose to write your merchant account fully understands the difference between retail, telephone, mail order and Internet. Not only are the fees different but also the programming and needed equipment or software varies greatly.
