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Step 1
Research the fees associated with processing credit cards. Not all companies charge the same types of fees, but the typical fees include discount fees, transaction fees, batch fees, a minimum discount fee and statement fee. Some companies require you to pay an application fee or setup fee to get started. It's important to note that some types of cards charge higher rates than others, like rewards cards, international cards and corporate cards.
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Step 2
Talk to local banks first. Tell them what kind of business you have and they'll ask you a few questions about the transactions you do. Common questions probe to find out your monthly gross sales, your average ticket amount and if you take orders over the phone or Internet (if so, you'll be charged a higher discount rate). If you want to further explore your options, look into online processors, like PayPal.
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Step 3
Get a complete fee schedule for each bank. Compare them to see which will cost you the least. For example, if you do most of your sales with big businesses, you'll want to focus on the discount rate for corporate cards. If you don't do a whole lot of business with customers who would use a credit card, compare minimum discount fees and statement fees, as these fees are fixed and will not change no matter what volume you do.
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Step 4
Apply for a merchant account after you pick a processor to go with. The application process is pretty simple and you will most likely know if you are approved within 24 hours. You'll probably need to send the company a check so they can deposit your earnings directly into your bank account (as well as withdraw their fees every month) and a copy of your Fictitious Name Registration (or DBA), if applicable.
