Merchant credit card accounts are a necessary for most retailers, whether they're located online or in a brick-and-mortar storefront. Millions of consumers choose pay for their purchases with a credit card each day. So it's in the retailers' best interest to look for low-cost merchant card services so they can accept these credit card, debit card and sometimes even check payments.

To begin working with merchant services, choose a plan that best meets your needs. This can include retailer services, online services and even mail or phone order services. Good merchant services providers should work with you on a variety of points, including:

1. Offering low-cost or free credit card processing equipment.

2. Giving you the ability to receive real-time processing for faster payment delivery.

3. Providing easy transactions for high volume retailers.

Action Steps
The best contacts and resources to help you get it done

Compare card services that also offer processing equipment

Credit card processing equipment can be expensive, especially for the budget of a startup business. To avoid paying $200 or more for a good credit card processing machine, most small businesses sign up with merchant account providers that offer deep discounts on card readers, or offer completely free models.

I recommend: North American Bancard provides a few free machine options when you sign up to use its merchant services. Credit Card Machines offers advice on how to find cheap credit card machines if you are not interested in the free offers.

Purchase merchant card services that offer real time processing

Some retailers still resist the idea of using credit card machines. They wonder when they are going to receive their money and how big a cut the merchant service will take. For most services today, you will find that fees are generally under 3 percent for most transactions. Services also offer real-time processing so you can get your money quickly.

I recommend: Networks Solutions' many services include merchant accounts with real-time credit card processing. MerchantSeek provides merchant services information that compares real-time processing versus non-real-time processing.

Evaluate services to find the best high volume merchant accounts

Merchant services accounts are a good asset for any business that sells products and services. But those businesses that really bring in the money each and every month, usually $50,000 or more, should invest in the security and speed of a high volume merchant account. These account process payments at a fast rate, so you still get your money as quickly as possible.

I recommend: AllOptions.com provides a quick tool for merchant services comparison among the top providers. InstaBill provides a list of benefits that come with signing up for a high volume merchant account for your business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To get the most out of credit card merchant services, choose a merchant account that fits your needs. For example, a retailer account provides very different benefits than an online merchant account.

Small businesses that accept credit cards sell more products and services. That's why you need to set up a merchant services account with merchant service providers. This includes all types of non-cash payment processing, such as PayPal transfers, electronic checks, debit cards, credit cards, stored value cards and smart cards. When you've set up a merchant services account that makes these "plastic" payments possible, it establishes credibility and easier transactions for all types of customers, from consumers to business to business (B-to-B).

Credit card, PayPal and electronic check payment processing is also essential for Web-based sales, opening up a whole new audience for your business. If you run an online or telemarketing business, you may need to pay higher fees and provide a deposit for establishing your merchant services account, as these start-ups are at a higher risk for credit card fraud.

The steps to setting up a merchant services account are simple:

1. Establish your merchant services account through a bank, credit card processing service, or other merchant service provider.
2. Provide credentials for approval through the merchant services account department. Get the proper payment processing equipment: software (desktop software or an online service) and hardware, such as a card swipe terminal or a receipt printer.

Action Steps
The best contacts and resources to help you get it done

Go to the major merchant service providers

Navigating the plastic payment processing world can be confusing, especially if you're new to electronic transactions. But major financial services companies can provide advice and guidance on how merchant services credit card processing operates.

I recommend: I recommend: Sign up with major merchant service providers, such as American Express, Visa, and MasterCard, to start accepting these popular credit cards. You'll also find informative guides that detail the basics of setting up a merchant services account for websites, retail businesses, restaurants or any other small business.

Integrate payment processing with your accounting software

To streamline payment processing, consider using merchant services from major accounting software providers.

I recommend: QuickBooks merchant services offers credit card processing for web stores, for face-to-face transactions or for phone, fax or mail order transactions. With this system, transactions are automatically entered into your QuickBooks accounting software.

Power up your web merchant services with PayPal

PayPal is more than a payment processing system for online businesses. It has a full range of low-cost payment solutions, including 'Virtual Terminal', which allows business owners to easily accept credit card payments online, as well as by phone, fax or mail.

I recommend: Compared to many banks, PayPal offers a simpler and faster web merchant services account setup process and allows you to begin taking credit card payments almost immediately.

Visit your local bank or financial service institution for merchant services

Most major banks thrive on small business accounts, and offer all types of credit card payment processing services, including those for web merchant services accounts.

I recommend: Bank of America and Wells Fargo are well-known reputable banks with small business divisions catering to start-ups.

Get discounted merchant services

Industry, professional or small business associations may offer merchant services and credit card payment processing solutions as a member benefit.

I recommend: I recommend: The National Federation of Independent Businesses (NFIB) offers discounted merchant services through Solveras Payment Systems.

Consider wireless technology for payment processing

Payment processing can go mobile with the use of handheld wireless mobile technologies that let you accept debit card and credit card payments anywhere.

I recommend: Industry leaders Authorize.net and Cardservice International both offer merchant services along with complete wireless solutions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Protect yourself against credit card fraud by asking merchant service providers what fraud protection services are available.
• •  Negotiate the best terms, as they vary at different merchant service providers. For instance, you can get equipment rental, monthly minimums, chargebacks, flat per-transaction fees, discount rate or a percentage of each sale.
• •  If you will be conducting online sales, decide if you should use lower-cost 'batching,' which means you collect card information and process manually offline, or if you need real-time processing, available from your merchant service provider.

These days when no customer wants to carry around cash, it is important for businesses to offer the alternative payment processing options provided by merchant services. This way, you can accept cash, checks, credit and debit cards at your store. Credit card merchant services allow you to accept and receive credit card payments from your retail store, as well as an online store.

There are many low-cost merchant services for small businesses, though the pricing and costs of merchant services will range depending on the service. Categories include retail, phone orders and online processing. The price will change according to the following:

1. Whether the merchant credit card accounts also work with debit cards.

2. How fast payments are processed through the account.

3. What fees you must pay for each transaction.

Action Steps
The best contacts and resources to help you get it done

Purchase merchant card services for you online business

Whether you are expanding your retail services to include an online presence or your online store is a startup, a merchant account is necessary for processing payments from online customers. Monthly fees for an online merchant account can range from $10 to $20. This, however, does not include the fees per transaction, which for online services are around 2.25 percent.

I recommend: Monroe Bank offers merchant credit card services for retail and online stores that include features like secure gateways and real-time transactions. If you're looking for more information on merchant accounts, check out the buyer's guide from MerchantSeek.

Choose merchant services providers for phone and mail orders

While millions of people that shop online, there are still people who don't feel comfortable ordering off the Internet. For those who don't like shopping online but still want to shop from home, there are still many companies that offer phone and mail orders. These services can cost anywhere from $15 to $25 a month, plus fees per transaction; for mail orders this is around 2.15 percent.

I recommend: Flagship Merchant Services provides fast and secure low-cost merchant services for small business that take phone and mail orders. Ensight Merchant Services provides tips on setting up your merchant account for phone and mail orders.

Set up merchant account services for retailers

Another way to accept credit card payments is to do it through a retail store. This is probably the most common place you will find credit card transactions. The most important aspect of a retailer account is the speed of processing the payments and receiving the money. Merchant accounts for retailers can cost $25 a month for most accounts. Retailers also get the smallest transaction fees, at around 1.66 percent.

I recommend: Merchant Service Group provides information on the types of equipment you will need to accept credit and debit payments through your retail store. Total Merchant Services provides merchant accounts tailored to the needs of retailers, plus gives you the option of choosing free equipment with your new account.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you find yourself with a lot of merchant services information and still aren't sure which service to choose for your business, try using a merchant services comparison to see which company can give you the best service for your money.

Merchant services are the standard way merchants accept and process credit card payments. Merchant services work with all of the major credit card companies to provide a standard system for processing credit card payments through point-of-sale technology or online payment processing. Any businesses wanting to accept credit card payments from their customers needs to use merchant services offered through a merchant account. This will establish a connection between the merchant and the credit card company.

Action Steps
The best contacts and resources to help you get it done

Merchant account

A merchant account is a system that processes credit card payments from the point of sale to the credit card company. Merchant accounts provide the money from the transaction to the business within two or three days.

I recommend: MerchantSeek explains the concept of a merchant account, the requirements for obtaining and using an account, plus the rates and fees associated with using the account.

Activity limit

An activity limit is the maximum amount of money or the maximum number of transactions allowed to be authorized within a specific amount of time.

I recommend: The Federal Deposit Insurance Corp. (FDIC) provides information on activity limits of merchant accounts in its Credit Card Activities Manual.

Arbitration

Arbitration is the process of resolving a charge-back dispute or fraud claim between the card holder and the merchant account. Fines are sometimes assessed and it is through the arbitration process that the parties determine who is responsible for paying the charges.

I recommend: The Finance Industry Regulastory Authority (FINRA) provides an outline of the arbitration and mediation process merchants and credit card companies go through when there is a dispute.

Merchant processing agreement (MPA)

A merchant processing agreement is a written agreement between a merchant and the acquiring bank that refers to the acceptance of bankcards.

I recommend: TechAgreements provides an example of an MPA with an option to purchase the complete document.

Per transaction fee

The per transaction fee a is a fee assessed and charged to the merchant for every transaction processed through the account.

I recommend: All Business provides information on credit card transaction fees and advice on how to choose merchant services that offer the lowest per transaction fee.

Merchant qualification standards

Merchant qualification standards are the minimum standards put forth by credit card companies to accept merchants. By these standards, the merchant is required to have a good financial standing and be financially responsible.

I recommend: VISA provides resources for download that include the standard merchant practices and qualifications.