How Mx Merchant Payment Processing Works and What It Costs
What Mx Merchant Payment Processing Does
Mx is a payment processor that moves money from customer cards and bank accounts into a merchant's account. It sits between your point-of-sale system (the register or online checkout) and your bank, handling the technical work of authorizing transactions, settling funds, and managing disputes. Mx does not lend money or provide financing—it processes payments and deposits the proceeds into your business bank account, usually within one to two business days.
Mx works with both in-person and online merchants. If you run a retail store, restaurant, or service business, Mx can connect to your existing register or payment terminal. If you sell online, Mx integrates with shopping carts and e-commerce platforms. The processor handles card brands (Visa, Mastercard, American Express, Discover) and bank transfers (ACH), so you do not have to manage separate relationships with each card network.
Key Takeaways
- Mx charges a percentage of each transaction (interchange rate) plus a flat per-transaction fee, and these rates vary based on card type, industry, and transaction method.
- Settlement deposits typically arrive one to two business days after a transaction, though some accounts may see longer delays depending on risk assessment.
- Chargebacks occur when a customer disputes a charge with their card issuer, and Mx will deduct the disputed amount from your account while the claim is investigated.
- You will need a business bank account, a merchant account application, and documentation of your business structure and ownership to set up processing with Mx.
- Mx pricing is negotiable for higher-volume merchants, and comparing rates across processors can save thousands of dollars annually depending on your transaction mix.
How Mx Charges You: Fees and Rates
Mx charges you in two ways: a percentage of each transaction (called the discount rate or interchange-plus markup) and a flat fee per transaction. The percentage varies by card type—debit cards cost less than credit cards, and rewards cards cost more than basic cards. Your industry also affects the rate: restaurants and retail stores pay different percentages because they carry different fraud and chargeback risk.
The flat fee per transaction typically ranges from $0.10 to $0.30, though this varies by plan. If you process 1,000 transactions per month at $0.25 per transaction, that is $250 in flat fees alone, separate from the percentage. Mx also charges monthly statement fees (usually $5 to $15) and may charge for additional services like batch processing, PCI compliance, or terminal rental.
Rates are not fixed across all processors, and Mx will negotiate with merchants who process high volume or who have low-risk transaction profiles. If you process more than $10,000 per month, it is worth asking Mx for a custom rate or comparing their offer to competitors like Square, Stripe, or your bank's own processor. A difference of 0.1% on $100,000 in monthly volume equals $100 per month—$1,200 per year.
How Money Moves: Settlement and Timing
When a customer swipes a card or enters their bank details, Mx authorizes the transaction in real time. The customer sees the charge immediately, but the money does not arrive in your account right away. Mx holds the funds for a settlement period, which is usually one to two business days. During this time, Mx confirms that the transaction is legitimate, that the customer's bank has the funds, and that no disputes have been filed.
Settlement deposits arrive on a schedule set by Mx based on your account type and risk profile. Most merchants receive deposits once per day, usually in the morning. Some accounts receive deposits twice daily if volume is high. Weekends and holidays do not count as business days, so a transaction processed on Friday may not settle until Tuesday. If Mx flags your account as higher-risk—for example, if you are new, in a high-chargeback industry, or processing unusually large transactions—settlement may be delayed to two to three days or held in a reserve account.
You can see pending and settled transactions in your Mx dashboard in real time. The dashboard shows which transactions have cleared, which are still pending, and which have been disputed or reversed. This visibility helps you track cash flow and catch problems early.
Chargebacks: When Customers Dispute Charges
A chargeback occurs when a customer contacts their card issuer or bank and disputes a charge you made. The customer might claim they did not authorize the transaction, that the product never arrived, that the service was not delivered as promised, or that they were charged twice. When a chargeback is filed, Mx immediately deducts the disputed amount from your account—you lose the sale and the payment processing fee.
Mx then gives you a window (usually 7 to 10 days) to respond with evidence that the transaction was legitimate. Evidence includes the signed receipt, email confirmation, tracking number, delivery proof, or communication with the customer showing they received what they paid for. If you provide strong evidence, the chargeback may be reversed and the money returned to your account. If you do not respond or your evidence is weak, the chargeback stands and the money stays with the customer's bank.
High chargeback rates (typically above 1% of your transaction volume) can result in higher processing fees, mandatory reserves, or account termination. Mx monitors your chargeback ratio and may require you to implement fraud prevention tools or change your business practices if disputes climb. Keeping detailed records and communicating clearly with customers about what they are buying reduces chargebacks significantly.
What You Need to Set Up Mx Processing
To open a merchant account with Mx, you will need a business bank account in your business name, a valid business license or tax ID, and documentation of your ownership and structure (sole proprietor, LLC, corporation, etc.). Mx will ask for your Social Security number or EIN, your business address, and details about what you sell and how much you process monthly.
You will also need to choose a payment terminal or integration. If you process in person, Mx offers card readers that connect to your phone, tablet, or point-of-sale register. If you process online, Mx integrates with platforms like Shopify, WooCommerce, or custom checkout pages. Some terminals are provided free with your account; others require a purchase or monthly rental fee.
Mx will review your application and may request additional documentation—bank statements, business tax returns, or details about your industry. Processing typically takes three to five business days. Once approved, you can begin processing immediately, though your first settlement may be held for a few days while Mx monitors your account for fraud.
Comparing Mx to Other Processors
Mx is one of many payment processors available. Square, Stripe, PayPal, and your bank all offer merchant processing, and each has different fee structures, settlement times, and features. Square charges a flat 2.6% plus $0.10 per card transaction for in-person sales and 2.9% plus $0.30 for online sales. Stripe charges 2.9% plus $0.30 for online and 2.7% plus $0.05 for in-person. Your bank may offer processing at rates tied to your account balance or deposit history.
The best processor for you depends on your transaction volume, average transaction size, industry, and whether you need in-person, online, or both. A restaurant processing $50,000 per month in small transactions will pay differently than an e-commerce store processing $50,000 in large orders. Request quotes from at least two processors and calculate your annual cost based on your actual transaction mix, not just the advertised rate.
Protecting Your Account and Reducing Fraud
Mx monitors your account for fraud and unusual activity. If you suddenly process 10 times your normal volume, process unusually large transactions, or receive many chargebacks, Mx may freeze your account pending investigation. To avoid this, keep your processing patterns consistent and communicate with Mx if you expect a spike in volume (for example, during a seasonal sale or after a marketing campaign).
You can reduce fraud risk by requiring signatures for in-person transactions, using address verification (AVS) for online sales, and requesting the CVV code from the back of the card. For high-risk transactions—large orders from new customers or international sales—consider requiring additional verification like a phone call or email confirmation before processing the payment. Mx provides fraud detection tools in your dashboard that flag suspicious patterns automatically.
Keep your terminal and login credentials secure. Do not share your Mx password, do not leave your card reader unattended, and do not write down sensitive information. If your terminal is lost or stolen, contact Mx immediately to deactivate it and request a replacement.
Frequently Asked Questions
How long does it take to get paid after a customer swipes their card?
Most transactions settle within one to two business days. Mx holds the funds during this period to confirm the transaction is legitimate and no disputes have been filed. Your first few transactions may take longer while Mx monitors your account. Weekends and holidays do not count as business days.
What happens if a customer claims they never received their order?
The customer files a chargeback with their bank, and Mx deducts the amount from your account. You then have 7 to 10 days to provide proof of delivery—a tracking number, signature confirmation, or email showing the customer received the item. If your evidence is strong, the chargeback is reversed. If not, you lose the money.
Can I negotiate Mx's rates?
Yes, especially if you process high volume or have a low-risk profile. Rates are not published as fixed prices; Mx will work with you on a custom rate. It is worth comparing quotes from multiple processors and asking Mx to match or beat a competitor's offer.
What if Mx freezes my account?
Mx may freeze your account if fraud is suspected, chargebacks spike, or your processing pattern changes dramatically. Contact Mx immediately to ask why the freeze occurred and what documentation they need to release it. Freezes are usually temporary while Mx investigates, but can last days or weeks depending on the issue.
Do I need a separate account for online and in-person sales?
No. A single Mx merchant account can process both in-person and online transactions. You will need different terminals or integrations for each channel, but they all feed into the same account and settlement schedule.