 How to Begin Accepting Credit Card PaymentsPublished Date: 2010-01-19 09:12:39 WorkOnInternet.com
Thanks to merchant account service providers, businesses of any size, offering nearly any type of product or service, can accept credit cards as a method of payment, simply by establishing a merchant account. A merchant account is an account that’s established to receive the money derived from credit card payments. While merchant accounts used to be limited to a few select financial institutions, today there are a wide variety of merchant account service providers available to suit the needs of nearly any type of business. When selecting a merchant account for your business, be sure to choose one that has a wealth of experience dealing with the type of business you’re in, or if you’re just starting out, choose a merchant account services provider that is experienced in dealing with new or growing businesses. Merchant account providers who deal with small or new businesses can often structure better overall deals than those providers who deal primarily with large accounts. For your protection, seek out a provider who has experience in dealing with credit card fraud and chargebacks. And if your business is online, you’ll want to choose a provider who has expertise in setting up and maintaining Internet accounts. When shopping around, you’ll also want to consider the costs associated with establishing and maintaining the account. Most merchant accounts will cost from $200 to $400 and up to establish. In addition to setup fees, you will also be comparing transaction fees and other fees that may be associated with the account. Be sure to ask each provider for a detailed listing of any and all fees that may be associated with the type of business you operate, in order to make a fair comparison among merchant account providers. Establishing a merchant account is not much different from applying for any other type of financial account. Once you’ve identified a potential merchant account provider for your business, the next step is to fill out a merchant account application. In addition to the name and type of your business, you will also be asked for information to help determine your credit worthiness, as well as your credit history and score. If your business is up and running, the merchant account provider will also look at your business’ financials, in addition to your own background and financial history. Once the application is submitted, the approval process can take from two days to two weeks, depending upon the type of business and the information provided. Just as with credit card or loan applications, your chances of being approved relate to your credit rating, as well as the nature of the business itself. Finally, be sure to choose a provider that is flexible with regard to your business and its growing needs. While your business may be small today, you want to ensure that your merchant account services provider will be able to accommodate your needs as your business develops and expands over time. Once your account is established, you’ll need to lease equipment in order to physically accept cards at your location. Most merchant account providers lease card swiping equipment for an additional fee, so be sure to ask about these fees when comparing account providers. For online businesses, swiping machines and other physical equipment are not necessary. These businesses need to be able to validate credit cards through a payment gateway. While some merchant account providers may offer a gateway provider with their service, in other cases you may need to find a payment gateway provider on your own. Most merchant account providers can make recommendations for one of these companies, which allow for real-time processing and authorization of the card being used to make a purchase. When the gateway is not provided by your merchant account provider, be sure the software used by the gateway provider you choose is compatible with your merchant account, in order to ensure that all transactions proceed smoothly and successfully. For both online and in traditional “brick and mortar” stores, credit cards are becoming more prevalent as consumers turn to them as a source of secure and ready cash. By offering credit card payment options for your customers, you can substantially increases sales and grow your own bottom line. Karen Zabel is a freelance writer who writes about Credit Card Processing Service.
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