How to Choose a Merchant Account Provider

Today, if you own and run a business, you clients are very likely to take it for granted that purchases can be made with their favorite credit card. However, setting up your Website to accept credit cards can be a daunting prospect. These days, it's imperative to consider protecting yourself and your customers against fraud. Setting up a merchant account provider can be a straightforward, risk-free process that will make your business appear professional. It will also increase your revenue.

Difficulty: Moderately Easy

Instructions

1. Shop around. Research the various merchant account providers who offer credit card processing services, Make a shortlist. Verify that the providers you consider have a reputable track record. Check to see whether they are accredited with the Better Business Bureau. Look them up at the Bureau's Website. You can find the Website in our Resources section. If there are several complaints, drop the company from your shortlist. Make sure you do this for each and every company you are considering.

2. Compare the features and benefits of the different service providers on your shortlist. At a minimum, you should choose an account that offers: SSL (Secure Socket Layer) technology, accepts all the major credit cards, offers online payment processing and reporting, and free customer service and technical support.

3. Evaluate the costs and fees charged by different merchant account providers to determine which one offers the best value for your hard-earned money. The fees charged for the exact same service or feature vary widely from one provider to another. Beware of providers who offer rates that are much lower than other reputable companies. These companies often have hidden fees which will end up costing you a lot more.

4. Look out for package deals that bundle a number of features and services for one discounted rate. These deals may lower the overall cost of one provider over the other. A number of merchant account providers may waive some fees or combine other financial services such as payroll to maximize cost efficiency for your business.

5. Compare and contrast the contract terms of the different merchant account providers. Many providers require lengthy contract terms that can bind you for up to three years. Take into account the cancellation fees and penalties, which can cost you dearly if your business needs change and you need to switch providers.

6. Choose a merchant account provider who meets the individual needs of your business. Do this based on the information you have gathered in the steps above. Keep in mind that the least expensive merchant account provider is not always your best choice. Great customer service, technical support and a proven track record are prime considerations.

Tips & Warnings

• It is crucial to differentiate between online merchant accounts and retail merchant accounts. The differences in rates and features are often significant. What's more, it is not unheard of for an online business to unknowingly sign up for a retail merchant account.

Resources

• Verisign
• IntelliPay
• Authorize.Net
• Signio
• Better Business Bureau

Who Can Help Sponsored

• Fax without a fax machine! Over 11 million people use eFax® to fax online. Get your free trial today
• Onebox® - Virtual Phone System for Small/Medium Businesses. Service includes Toll Free, Local Number, Call Forwarding, Voicemail, Online Fax & more. Free Trial!