Nine Hacks to Double- or Triple-Dip Your Savings

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A true frugalist just hates to pay retail. Fortunately, that’s rarely necessary.

With just a handful of savings tactics, you can cut costs drastically on necessities and nice-to-haves alike. These are some pretty simple savings hacks, made easier by technology.

Try one (or all!) to make every dollar work for you – and work hard.

1. Combine sales with coupons.

One of the oldest frugal hacks in the book, this is simpler than it’s ever been thanks to coupon and deal sites like RetailMeNot, Savings.com and The Coupon Mom. Sure, some people still read store flyers, but shoppers are increasingly likely to look for the best deals online.

Sound like too much work? Search for “deals [name of store, name of your town]” and you’ll likely find that a regional deal/coupon blogger has done all the work for you.

The Coupon Mom offers state-by-state linking for sale/coupon/rebate deals at supermarkets, drugstores, and dollar stores. She provides links to downloadable coupons for these deals when available. These are extremely useful for getting needed products cheaply or free.

Once you’re in the habit of doing this, the next step is…

2. Combine discounts and gift cards.

A guy I know explained how his household frugal-hacks a seltzer habit. It’s a two-part process: buying the CO2 tank refills for their SodaStream setup at Bed Bath & Beyond with one of the company’s always-available coupons, and paying the balance with a discounted gift card. Depending on the reseller market, he can save anywhere from 8 to 15 percent on the gift cards.

This tactic obviously requires a little forethought, but not that much. You can set an alert for gift cards you like and use regularly, on top of any in-store savings or coupons. Pet food, movies, restaurants, flowers, sporting goods – you name it, and there’s likely a gift card out there. The aggregator site GiftCardGranny.com lets you compare savings among a slew of resellers.

Or cut out the middleman and buy your discounted cards at Costco. Riley Adams, who blogs at YoungAndTheInvested.com, gets AMC theater gift cards for 20 percent off at the warehouse club. He and his wife increase their savings by going to the $5 shows on Tuesday, and by paying with their Costco credit card, which gives them a 2 percent reward.

Speaking of which…

3. Combine discounts, gift cards, and other deals.

Recently I bought Cinemark movie gift cards (plus a couple other cards) from Raise.com. The gift card reseller had a higher-than-usual rate that day, plus a promo code for an additional discount.

It gets better. By accessing Raise.com through Mr. Rebates, I got a $10.89 refund, and I paid for the order with a rewards credit card. All told, I paid $33.01 for $50 worth of movie cards.

But Nikayala Sutherland gets bragging rights for this section, because she got Express to pay her to get a pair of $80 jeans. Here’s how that broke down:

Sutherland waited until the jeans were 40 percent off, and applied a “$15 off a purchase of $30 or more” coupon. Next, she installed the Express app and filled out a user profile, earning $10 in store credits.

Express gives a $20-off birthday credit, which Sutherland used. She paid with her Express Next credit card for an 8 percent cash-back bonus. Finally, she reviewed the jeans online, earning her a $5 credit. Ultimately, Express paid her a little over $3 to buy the jeans. “It’s the most financially savvy purchase I’ve ever made,” says Sutherland, of the Budgeting Couple blog.

Not all of us can pull off a shopping hack like that, but all of us should want to.

Although some personal finance pundits warn against getting store credit cards, they can sometimes make sense. In general, though, the best way to double-dip your savings is to…

4. Get a good all-purpose rewards credit card.

Find the plastic that best fits your personality. Do you travel often? Frequently eat out or order in? Buy a ton of groceries for your large family or your cooking and baking hobby? Does your long commute call for a lot of gasoline or public transit, or are you a city mouse who uses a lot of rideshare services? There’s a card that fits your needs and will reward you for purchases you’re already making, so go find it.

Today’s cards have perks that go beyond the “one dollar = one point” model. For example, Kristin Lee of the CentsandPurpose blog has a rewards credit card that offers 20-percent discounts on gift cards. She uses some of her rewards points to buy the cheaper scrip, waits for a needed item to go on sale, and purchases it through the Ebates cash-back site (usually with a coupon code) for a rebate.

5. Add some apps.

Shopping apps such as , Receipt Hog, Drop, Fetch, and Earny hook you up with rebates, alert you to price drops, and let you earn points to be traded in for gift cards. A blogger named Kyle, of Millionaire Mob, writes of combining Ibotta, Drop, a Visa Local deal, and a special cash-back category from his rewards credit card to earn a 22-percent cash-back bonus plus Uber credits at Whole Foods.

While not everyone buys groceries at Whole Foods, shopping apps also work at drugstores, supermarkets, and department stores. The Target app is hugely popular, offering e-coupons that can be used alongside Target store coupons and manufacturers coupons. Tracie Forbes of Penny Pinchin Mom devoted an entire article to explaining how to optimize this tool.

6. Watch for specials offered by rewards credit cards.

Introductory offers can be tantalizing – a gazillion points if you spend $10,000 in the first three months! a quadrillion extra miles if you use the card to pay for hotel stays! – but be careful to read the fine print. If you’re dedicated to card “churning,” it doesn’t have to be a one-time deal, either: You can continue earning pretty great sign-up bonuses that you can apply to discounted gift cards (as Lee did, above), great travel, or even cash for a high-yield savings account.

However, failing to manage these offers carefully could “damage your credit score,” says credit expert John Ulzheimer. He explains the basics in this article on The Simple Dollar.

A much simpler route is to take advantage of special discounts offered by your credit card. For example, my Chase card offers 5 percent cash-back on different purchase categories every quarter. Right now one of them is “supermarkets,” so my partner has agreed to let me pay for all the groceries with that card. (We’ll settle up later.)

Or you could “manufacture points,” the way a blogger called Dr. McFrugal does. He buys gift cards for everyday needs (and wants) at Office Depot, because his Chase card gives him five times the points for office supply store purchases. This makes sense especially if “you have an immediate use for the gift cards.”

7. Join a store rewards program.

Supermarkets, drugstores, and other retailers have loyalty programs that give discounts and special deals to those who sign up. One of my favorites is Walgreens, whose Balance Rewards program points can be used like cash at checkout.

Recently I had fun with the Fred Meyer Rewards program. The store (part of the Kroger chain) offered four times the fuel reward points for gift card purchases. To treat a friend to lunch, I bought a $25 restaurant card and got 100 points towards my next gasoline purchase. And, of course, I paid with a rewards credit card.

If you’re going to buy these things anyway, go for it. Just don’t fall into the trap of buying something just to get the points. If you don’t need it, then it’s no bargain.

8. Get paid for online searches.

Join sites such as , or InboxDollars . With MyPoints and Swagbucks you can cash in those points for gift cards, then use them combined with discounts as described above (or request PayPal and use it any way you want). InboxDollars pays out in cash.

Point being, if you’re online searching anyway, then ultimately you’ll be paid for it.

9. Hack your gift-giving.

Give a discounted gift card outright. Logan Allec, who blogs at Money Done Right, chooses cards to wherever the engaged couple is registered. He follows the formula noted above: accessing discounted gift card sites through a cash-back shopping site and paying with a Citi Double Cash card, which gives 2 percent cash-back (1% when purchase and another 1% upon payment). He’s saved as much as 18 percent in these kinds of transactions.
Buy with a shopping app. You might use that Target app to buy a birthday present. Or perhaps you’ll order a gift from Amazon, knowing that the Earny app will send you a refund if the price drops.
Buy at a place that gives points. For example, you could load up on diapers at Walgreens for a baby shower gift.
Play hard to get. That is, once you’ve found the gift item you want, put it in your online shopping cart and then log out. Within a couple of days you’re likely to get an e-mail from the merchant offering some kind of discount if you’ll complete the purchase.

Readers: What are your favorite ways to stack savings?

Award-winning journalist and veteran personal finance writer Donna Freedman is the author of “Your Playbook for Tough Times: Living Large on Small Change, for the Short Term or the Long Haul” and “Your Playbook for Tough Times, Vol. 2: Needs AND Wants Edition.”

More by Donna Freedman:

The post Nine Hacks to Double- or Triple-Dip Your Savings appeared first on The Simple Dollar.

A true frugalist just hates to pay retail. Fortunately, that’s rarely necessary. With just a handful of savings tactics, you can cut costs drastically on necessities and nice-to-haves alike. These are some pretty simple savings hacks, made easier by technology. Try one (or all!) to make every dollar work for you – and work hard. 1. Combine sales with coupons. One of the oldest frugal hacks in the book, this is simpler than it’s ever been thanks to coupon and
The post Nine Hacks to Double- or Triple-Dip Your Savings appeared first on The Simple Dollar.

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Exploring Different Types of Homes and What They Costs

Zoe Hansen / Investopedia Fact checked by Vikki VelasquezReviewed by Andy SmithIf you're shopping for a new dream home, you may have noticed the many styles, eras, and phrases used to describe properties. Understanding the many types of home and home terminology will help you determine what best fits your needs and tastes.Two main parameters classify a home: the structure type and the architectural style. The structure type refers to the style of building, such as a single-family home or a condo. The architectural style refers to features and designs, such as craftsman or contemporary. Key TakeawaysWhen starting your new home search, you'll need to take into account structure type and architectural style. Home structures come in varying sizes, from apartments and condos to tiny homes and single-family houses.Determining what you can afford and how much space you need will help you zero in on appropriate options. When it comes to architectural style, the region in which you're looking to buy will play a big part in the styles that are available. Housing demand, location, the age of the property and whether it has been updated, and neighborhood amenities will all impact the cost of a home. Structure TypesApartmentAn apartment is a group of similar units housed in one building that's owned and operated by a landlord, whether an individual or a corporation. Apartments are often one-story units within a multi-story building. Units can vary from studios (where the living space and kitchen are all one room) to several bedrooms.Their size makes them manageable to decorate, though there might be restrictions based on the building's rules. There also might be rules dictating whether you can own a pet or what kinds of pets are permitted. Apartment buildings often have conveniences like an on-site maintenance and repair staff, a shared lobby, laundry and mail rooms, parking facilities, and sometimes a gym or a pool. They tend to have only shared outdoor space, if any.Apartments and apartment buildings can feel quite social compared to other home structures because of the proximity of neighbors. However, they can also be noisy and lack privacy, as walls can be shared on either side, and there may be units above and below yours. Apartments are often rented out, though there may be opportunities to purchase a unit, depending on the building. While you will not build equity as a renter, you generally don't have to worry about maintenance or repairs to the apartment. NoteThough rental costs vary widely depending on an apartment's size and location, the average price in the U.S. was $1,958 per person per month, according to January 2024 data from Zillow. By comparison, a typical monthly mortgage payment–assuming 20% down–is $1,760, according to Zillow. CondoA condo, is typically thought of as being similar to an apartment, is a unit within a larger building. A condo can also be a townhome, and even a standalone home. Sometimes, condos are larger than apartments and can be multiple stories. If you were to rent a condo, it'd most likely be from an individual owner rather than a property manager. When you buy a condo, you buy a unit in a property and also share ownership of common areas, including outdoor spaces and stairwells. Instead of having a building manager or landlord oversee your unit, you will be in charge of all the repairs and upkeep if you purchase a condo. Condos are typically subject to the rules of a condo association. The association often also oversees the upkeep of common spaces, which is often funded by monthly fees on top of your mortgage. This can be a plus for landscaping, but it also means you must obey the condo association rules. Condos, like apartments, can feel very social since they often share walls. However, you are likely to have more space and, depending on the location, more direct street access with a condo. But since they do not lend the same freedom regarding lifestyle and design choices as a standalone home, they are a more affordable option and can make a great first-home purchase. ImportantThe median sale price of a condo in the U.S. as of April 2024 was $349,299. TownhomeA townhouse or townhome is an individually owned unit that shares at least one wall with another unit but has its own entrance from the street. These structures typically make use of vertical space with multiple stories. Consider them a cross between a condo and a single-family home.Sometimes, similar to condos, there are shared amenities among a collection of townhouses, including patios and pools. Townhomes can be found in both urban and suburban areas, and are typically more affordable than standalone single-family homes. The median sale price of a townhome in the U.S. as of early 2024 was $371,273. Single-Family HomeUnlike condos, apartments, or townhomes, a single-family home is a standalone unit. The majority of homes in the U.S. are single-family houses. Most commonly found in suburbs and rural areas, single-family homes are usually more private and offer more space.Since they are not connected to other units, you usually have more freedom to renovate than other home types. As owner, you have the sole responsibility of maintaining the property. This style of home often comes at a higher purchase price. Technically speaking, a single-family residence is any home with four or fewer units. According to the Census Bureau, the median square footage for a single-family home in 2022 was 2,299 square feet. The median sale price of single-family homes in the U.S. is $427,636 as of early 2024.Tiny HomeTiny homes have risen in popularity over the past decade, especially for single adults or couples who want homeownership but with greater financial freedom and less maintenance than other home types. These small units usually range from 60 to 600 square feet. Some are prefabricated, while others are custom builds. If the tiny home isn't mobile—some are—you'll need to rent or own the land on which it rests. Given their compact nature, tiny homes provide little room for family growth, hosting, or storage, but they are great for supporting solar and other off-grid projects. Architectural StylesWhen shopping for homes, identifying the time of home you want is only the first step. There is also a broad range of architectural styles to choose from depending on your specific needs and taste. Here are a few of the most popular home styles across the U.S. ColonialColonial homes have a simple, rectangular, symmetrical structure. Dating back to the 1600s, this home style is popular all over the East Coast. They typically have two or three stories, fireplaces, and brick or wood facades. Some showcase shingle siding and shutters. A classic Colonial house floor plan has the kitchen and family room on the first floor and bedrooms on the second floor. They are generally not open-concept. The exterior typically has an entrance at the center with symmetrical windows on either side. There are variations within the Colonial style based on the country of origin of colonial settlers, including Dutch Colonial, which features a large, barn-style roof and creative woodwork; French Colonial, which features iron stairs and balconies and elaborate entrances; and Federal Colonial, which typically features a layout around a central hall.British Colonial is the most common and recognizable style, which features a centered front door and two windows symmetrically positioned on either side. ContemporaryThe trends of contemporary architecture are constantly changing. Many of today's contemporary-style homes have asymmetrical layouts, open floor plans, and lots of natural light. They often feature a mix of contrasting materials and textures, low or flat roofs, and exposed beams. Color schemes are usually neutral and natural, with the goal of minimizing noise and clutter. CraftsmanCraftsman-style homes were popular between 1900 and 1930 and have since made a comeback. This architectural style arose on the heels of the Victorian home movement as a more affordable and accessible alternative. Craftsman houses were built throughout the U.S., especially in the Midwest and California. Furniture designer Gustav Stickley created craftsman bungalow kits for homeowners to purchase for about $1,000 and sold them in his magazine, The Craftsman—hence the name.A craftsman home features clean, sleek lines and visible hardware. Known for its woodwork, this style often contains notable built-ins, such as shelving and seating. On the exterior, craftsman houses often have porches, low-pitched roofs with wide overhangs, exposed roof rafters, and decorative beams under gables.There is an emphasis on natural colors, and the exteriors of these homes often have painted wood siding with accents of stucco and stone. Inside, they often feature a prominent fireplace.Mid-CenturyMid-Century modern homes get their name from the design style that boomed from 1945 to 1969. These homes feature large windows, flat roofs, and open-concept interiors. They have a very wide, low footprint and emphasize a connection to nature. They were also designed with family time and entertainment in mind and sometimes feature charming fixtures like conversation pits (below-floor-level built-in seating areas), built-in bars, and large fireplaces. Many mid-century modern homes are split-level, with short staircases connecting spaces throughout the house. A muted and natural color palette is common in these homes to complement the floor-to-ceiling windows. Colors include warm earth tones like orange, brown, or mustard, as well as natural wood and brick. Mid-century style homes and furniture have seen a major resurgence in recent years. VictorianVictorian-style homes boomed during the mid to late 1800s, during Queen Victoria's reign in the U.K. In the U.S., these homes began cropping up about 50 years later, on the heels of the Industrial Revolution.Around this time, new paint chemical dyes created options for more colorful exteriors that became a noteworthy feature of many early-century Victorians. that made different house colors possible, so bold, bright hues were a noteworthy feature of many Victorians. Later Victorians featured more natural-colored palettes.These homes often have a steeply pitched roof, bay windows, and a dominant, front-facing gable. They also typically have two to three stories with round towers, turrets, and dormers to add flair and draw attention to the top of the house. The facade is usually asymmetrical with a partial or full-width porch. Homes of this era had romantic, detailed woodworking, much like a toy dollhouse. Inside, it is common to find high ceilings, irregularly shaped rooms, doorways separating rooms (versus open-concept), and nooks. The Victorian era was known for its opulence, and stained glass, ornate fireplaces, and decorative wooden staircases can add even more character. Factors Affecting Home CostsNumerous factors can affect the cost of a home. The most obvious, and the one many homebuyers fixate on, is the size. When weighing multiple properties, the price per square foot can feel like the largest deciding factor. But don't lose sight of the others. Location, school ratings, crime statistics, and proximity to other amenities can all impact the cost of a property and the taxes you'll pay on it. Certain amenities will also increase a home's value. Outdoor space, including driveways, will make a home more expensive. The age of the home will also impact the cost. If a house is brand new, it may have a higher price point. Likewise, a historic property with updated amenities can also have a steep price. The state of the market plays an inordinate role in determining price since demand will impact the cost of square footage. Simply put, when houses are in high demand (as they are now), prices go up. This can also drag up other costs like subcontractor fees due to the strain on the labor force. Recent data on construction in North America show that the cost of labor across different types of home renovations, from structural ironworkers to tile setters, increased as high as 2.3% from January to November 2023.Frequently Asked Questions (FAQs) Should I Buy or Rent? If you're looking to grow your family or build equity, buying can be the smarter move. To determine what mortgage you can afford, use this calculator. What Is the Most Affordable Type of Home? A tiny home or prefabricated home is the least expensive type of home one can buy. An analysis by RubyHome found that the average cost of a tiny home in the U.S. is $67,000, which is over 80% cheaper than the average price of a typical single-family home. However, if you do not own land, you may have to cough up some rent money for a place to park the tiny home. A condo or apartment is also an affordable option. What Is the Best Type of Home for Families With Children? For families with children, single-family units or townhouses will afford you the most space. You can also look for one with a yard for outdoor play. A single-family home can offer greater privacy and reduced noise, as you will not be sharing any walls with neighbors. It can also be easier to renovate because you would not have to go through an HOA or property manager before proceeding. What Are the Most Expensive Locations for Buying a Home? The most expensive home prices are concentrated in coastal cities like New York, San Francisco, and Los Angeles. A home in Manhattan, New York has an average price tag of over $2.7 million, while a home in Honolulu, Hawaii costs an average of nearly $1.7 million. Several California metros make the list of most expensive homes, including San Jose, Orange County, and San Diego.The Bottom LineWhen buying a home, many factors will help you determine what works best for you. Whether you're looking to save some money with an apartment or invest in a property, factors including location and size will impact your decision.Beyond your needs, there are many different architectural housing styles that you can choose from. House-hunting can take a long time considering all these factors, but the sooner you get started on narrowing your choices, the faster you're likely to find a home that's right for you. Read the original article on Investopedia.
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What Is a Merchant Service? Their Role in Business, How They Work, and Benefits

Fact checked by Vikki VelasquezReviewed by Samantha SilbersteinWhat Is a Merchant Service?A merchant service is any one of a group of services that businesses can use to accept and process electronic payments from their customers. Merchant services facilitate these transactions and may involve a combination of point-of-sale systems, credit card readers, payment gateways, and online transaction processing, among others. Key TakeawaysMerchant services make it easier for businesses to accept electronic payments, such as credit and debit cards.Services are available for both in-store and online transactions, including point-of-sale systems and credit card readers at brick-and-mortar stores and online payment gateways for websites.Merchant services can offer benefits such as enhanced payment security, increased sales opportunities, and streamlined payment processing.There are many merchant services providers to choose from, but it's important to make sure they follow accepted security protocols. How Merchant Services WorkMerchant services encompass a number of processes involving merchants, their customers, and their respective banks. They include:The Customer Payment ProcessCustomers encounter merchant services when they initiate a transaction using a credit card, debit card, or other electronic means. This may happen through a point-of-sale (POS) device at the merchant's physical place of business, such as a shop or restaurant, or through on online payment gateway or portal on the merchant's website.In a typical scenario, the POS device or online portal will collect the pertinent details from the customer's card, then forward that information to the card-processing network associated with that card, such as American Express, Discover, Mastercard, or Visa.The information will include the account number and other data identifying the cardholder. During in-person credit or debit card transactions, the POS device obtains it by reading the card's magnetic stripe or EMV chip, where the information is embedded.In some cases (such as American Express and Discover), the network will also be the company that issued the card, known as the issuing bank. It can either accept or reject the transaction and relay its decision back to the merchant's terminal. Mastercard and Visa are simply networks or associations, and not card issuers, so they will seek approval from the issuing bank.If approved, the transaction will go through.Most of this process—often referred to as authorization—happens behind the scenes and virtually instantaneously, making it largely invisible to the customer.The Merchant Payment ProcessThe merchant doesn't receive its money right away. That involves a separate, multi-step process.When a transaction is given the green light, the merchant will receive an authorization code from the card issuer. The merchant will forward that code to its payment processor (often along with other transactions it completed that day, a procedure known as batch processing).The processor will send the information to the appropriate card network, which will then forward it to the issuing bank, if different. The issuing bank will then begin the settlement process, in which money finally changes hands.The Settlement and Funds Transfer ProcessIn the settlement process, the issuing bank will transfer funds to the merchant's bank, the acquiring bank. That bank will then deposit the funds in the merchant's merchant account. This process typically takes 24 to 48 hours.The issuing bank will also add the amount to the cardholder's balance, which will be reflected on their next billing statement. In the case of a debit card, the issuing bank can simply withdraw the money from the cardholder's account.Components of Merchant ServicesMerchant services rely on a combination of hardware and software. Some common components:Point-of-Sale (POS) SystemsIn their most basic form, point of sale (POS) systems are computers that allow a consumer to use their credit or debit card to purchase something at a merchant’s place of business. They then transmit the information to a card processing network, initiating the payment process. However, these systems have become increasingly sophisticated and not only allow merchants to conduct transactions but to monitor their inventory, record sales data, and perform other useful business functions. Some POS software can also link to accounting software, making bookkeeping easier.Credit Card ReadersA credit card reader, or payment terminal, is a piece of hardware that allows the POS to collect the data it needs. Card readers work in different ways, some relying on the older magnetic stripe technology, others allowing for the newer EMV chips or wireless NFC technology for contactless payments from smartphones and other devices.Payment GatewaysA payment gateway is the virtual equivalent of a POS system, performing the same basic functions but for online transactions. Because the physical card isn’t involved—these are often referred to as "card-not-present transactions"—the gateway must verify its legitimacy in other ways. This typically involves asking the cardholder to provide a validation code. Technically known as a CVV, CV2, or CVV2 code, it's a three- or four-digit number found on the front or back of today's credit and debit cards. Online Transaction Processing (OLTP)Used in conjunction with a payment gateway, online transaction processing allows merchants to process large numbers of transactions in real time, while also recording that information for accounting and other purposes. OLTP is a vital tool in e-commerce, where speed is key.Benefits of Merchant ServicesMerchant services cost money, but they also provide benefits beyond what merchants would be able to do on their own. Those include:Enhanced Payment SecurityMerchant services have a number of built-in safeguards to protect both the merchant and their customer (as well as the card networks and banks) from fraud and theft.Payment gateways, for example, provide a secure online connection between the merchant and customer, making it very difficult for hackers to infiltrate the system. For in-person transactions, POS systems and the security features embedded in credit cards work in tandem to protect consumers' information and thwart potentially fraudulent transactions.Merchants that accept card payments must typically comply with industry standards set by the PCI Security Standards Council, known as PCI DSS, the "DSS" standing for data security standard. The rules vary depending on the size of the business, based on number of transactions; the bigger the business, the more complex the requirements. Merchants that don't comply are subject to fines.Because most merchants have other work to attend to, they often delegate maintaining their PCI DSS compliance to merchant services providers. The PCI council itself advises merchants that, "In most cases, using a wholly outsourced third party to capture and process payments is the safest option."Increased Sales OpportunitiesWhile some consumers still prefer to use cash and some merchants may not accept any other form of payment, trends continue to move in the direction of electronic payments. A Federal Reserve study found that in 2022, credit cards accounted for 31% of all transactions and debit cards for 29%, while cash trailed at 18%.Clearly, merchants that aren't set up to handle electronic transactions put themselves at a disadvantage when it comes to sales.Streamlined Payment ProcessingIn addition to greater security, state-of-the-art payment systems speed transactions both online and off, reducing time and labor costs. The less time that customers have to wait in line and the less effort they need to expend in completing an online transaction, the more likely they are to come back. How to Choose a Merchant Services ProviderBusinesses today have numerous merchant service providers to choose from. Some are specialized businesses, others are divisions of major banks or corporations. Both Mastercard and Visa publish online lists of service providers that comply with their security requirements.To choose among service providers, the PCI Security Standards Council suggests a list of 12 questions worth asking. Among them:"Does your solution/product ensure the secure capture and transmission of cardholder data?""Does the vendor/service provider carry insurance to cover data breaches related to their product/solution?""Does the vendor/service provider assist with notification of my customers in the event of a data breach and your product solution is the root cause?"A number of websites provide ratings of merchant service providers. Providers that are cited as among the best on multiple lists include (in alphabetical order):Dharma Merchant ServicesHelcimPayment CloudPayment DepotStaxSquareStripeSeveral of the providers above also appear on Investopedia's latest list of the best credit card processing companies.Most merchant services providers offer a variety of plans and pricing tailored to different types and sizes of businesses.For example, Helcim charges no monthly fee. It says its processing fees average 1.93% plus 8 cents for in-person transactions and 2.49% plus 25 cents for online ones. Stripe's standard per-transaction fee is 2.9% plus 30 cents for domestic cards, also with no monthly fee. Both of these providers and others charge extra for hardware such as POS terminals and card readers, as well as for any additional services the merchant may choose. What's the Difference Between a Merchant Account Provider and a Merchant Services Provider? A merchant account is a bank account that can accept the proceeds from credit and debt card transactions. Merchant services refers to a wider array of specialized hardware and services to facilitate such transactions. It may include access to a merchant account as one of them. Who Pays Merchant Fees? Merchants have to pay fees on every card transaction, sometimes referred to as swipe fees or interchange fees. These fees go primarily to the card issuer, although the payment processor may also get a small cut. Ultimately the merchant may pass the fees along to the consumer in the form of higher prices. How Are Merchant Fees Calculated? Merchant fees are typically calculated as a percentage of each transaction. Credit card fees total about 2% of the transaction amount, on average. Debit card fees are limited by law to "$0.21 plus 0.05% multiplied by the value of the transaction, plus a $0.01 fraud-prevention adjustment, if eligible," as the Federal Reserve explains it. Merchant services providers will typically pass the swipe or interchange fee along to the merchant, while adding a small margin for themselves.The Bottom LineAs electronic payments have become integral to retail commerce, merchants have come to rely on merchant services providers to assist them in making sure that transactions are completed swiftly and securely. A wide variety of such services are available, and they can be tailored to the size of the business and the type of risks it may face. Read the original article on Investopedia.