Once you decide to look into online merchant options, you’ll want to figure out how much it will cost your company to start accepting web payments. You’ll want to find a low cost provider that offers seller protection in the case of buyer fraud.

Fees that you may have to consider for a business merchant account include application fees, fixed rate fees, transaction fees, termination fees and any other miscellaneous costs imposed by the company. To high volume sellers, Internet merchant accounts may offer discounts.

1. Figure out pricing and costs of online merchant accounts. You may decide to work in the fees into the price of your merchandise in order to offset the cost.

2. Compare Internet payment providers. Determine the Internet payment services that they offer and what type of seller protection that they provide. Top Internet merchant accounts include PayPal, PayPoint and Merchant Express.

3. Sign up for your business merchant account. Sign up will not usually cost you money and you will need to only provide some information about your business. Other online merchant account services will charge you a set up fee in order to start processing payments.

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

Learn about the costs of Internet merchant account services

The two main types of Internet payment providers are free and paid sites. With a free site, you don't have to pay a sign up or maintenance fee. However, transaction fees will likely get deducted from each payment. With a paid site, you'll pay a start up fee, but likely pay a lower transaction fee rate.

I recommend: Global and Secure Pay gives an overview of the benefits of a personal online merchant account. It also gives advice on how to compare free and paid Internet payment services. Find My Hosting discusses the different fees imposed by Internet payment providers and how to estimate these costs into your pricing models.

Find low cost online merchant services

Making sure you consider all costs associated with a small business merchant account can ensure that you're getting the lowest cost provider possible. All online merchant account service providers should have a fees page on their website that breaks down the cost of the account.

I recommend: Website 101 gives you the basics about credit card payment processing and how to understand the fees associated with accepting credit cards. Through Charge.com, you can get the software to accept credit card payments for free. The Internet transaction fee is 2.25% plus a $10.00 per month statement and customer service fee.

Pay a transaction fee for online check processing and Internet credit card services

Although some Internet merchant accounts may not cost you any money to sign up, you'll still likely need to pay a transaction fee in order to accept credit card online or check payments. Look for Internet payment services that charge the lowest rate.

I recommend: If you have ever sold anything on eBay, then you have likely heard of PayPal. This is the primary site used by eBay buyers to make payment to online merchants. Each time that a buyer makes a purchase, a transaction fee will be deducted. This rate is 1.9 to 2.9% of total plus $.30. Applied Merchant Systems charges 2.29% plus $.25 per transaction made through an Internet merchant account.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Face to face transactions will likely have a different transaction fee than Internet orders when using Internet credit card payment processing. They usually have a lower rate, typically less than 2%.

It's a fact: Small businesses that accept credit cards sell more. Often much more. To do that, you must set up a merchant account to accept credit card payments. You may need an internet merchant account as well. Here's a three-pronged strategy to help you find the best merchant account provider:

1. Decide what payment forms to accept with your merchant account. You can take only credit cards, or other non-cash payments such as debit cards, electronic checks, gift cards, stored value cards and smart cards.
2. Apply for a merchant account service that will be used to process payments and deposit the funds you collect in your regular bank account. A merchant account is often approved in 48 hours or less. Home business merchant account options are also available.
3. Choose the merchant services account technology you need. You can select anything from hardwired terminals, to PCs, to online merchant account services and wireless handheld devices to help accept credit card payments.

Business.com's "What Works for Business" blog is a great way to keep up with the latest solutions, trends and strategies for small and medium business — including merchant accounts and other payment solutions.

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

Get System Savvy

Fuzzy about how merchant account credit card processing works? Want to know how to apply for merchant account services and a merchant bank account? Let the big three show you.

I recommend: Visa, MasterCard and American Express all have super helpful small biz sites to walk you through the basics of accepting credit cards and can help with setting up a merchant account for your retail business, restaurant, website or just about any type of business you may operate.

Compare Rates and Options

BuyerZone is good for comparison shopping/price quotes on credit card processing services, including merchant account providers that can offer you an international merchant account, high risk merchant account, mastercard or visa merchant account.

I recommend: Request a quote at BuyerZone.com and learn more about how to accept credit cards at your business. This is a good place to compare fees and look for a low cost merchant account.

Small Volume? Get This Quick Solution from QuickBooks

QuickBooks has a brand new off-the-shelf credit card processing solution that simplifies the merchant account set up process at a low cost.

I recommend: Buy the QuickBooks Credit Card Processing Kit at Office Depot or details here.

Go Mobile

Accept credit card and debit card payments anywhere, anytime with handheld wireless technology for your merchant account.

I recommend: Cardservice International, and Authorize.net, both industry leaders in offering merchant account services, have complete wireless solutions.

Put PayPal Power in Your Corner

PayPal offers a full range of low-cost payment solutions great for online businesses, including 'Virtual Terminal' service that lets you accept credit card payments online.

I recommend: Signup and info at PayPal.

Tap Association Member Discount Deals

Many industry, professional or other small business associations offer credit card payment solutions and merchant account processing as a member benefit.

I recommend: The National Federation of Independent Business (NFIB) has negotiated discount merchant account services with Solveras Payment Systems; the National Association for the Self-Employed (NASE) offers a merchant account deal through National Processing Co. (NPC).

Look for low rates, no fees and free equipment

Credit card payment processing is a highly competitive field for both retailers and online merchants. Remember that savings don't only come as a lower rate, but in cost reductions from having your system set up properly, your charge-backs reduced, dependable equipment, and your funding on time.

I recommend: CreditCardBiz.com is a fast-growing credit card payment processor that handles about 70,000 merchants nationwide. They provide free state-of-the-art equipment, free user training, free replacement equipment shipped overnight, plus no application or annual fees.

Apply for a Merchant Account at Your Bank

Major banks serving small business offer credit card processing services of all kinds, including online business merchant accounts.

I recommend: The small business divisions at Bank of America and Wells Fargo are two top choices.

Add Electronic Gift & Loyalty Features

Scrap those paper gift certificates and customer loyalty punch cards and let your credit card processor boost business with electronic gift cards and customer loyalty rewards.

I recommend: Solveras Payment Systems offers an electronic gift and loyalty program customized to your business.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  At $39.95, the QuickBooks kit is an excellent value for a small biz with under $5k in monthly card transactions.
• •  Card fraud is growing. Ask merchant account vendors what fraud protection services they offer.
• •  Merchant account providers consider web-only and telemarketing businesses 'high risk.' You may need to put up a deposit or pay higher fees to begin.
• •  Fees and charges vary greatly. Possibles include discount rate (% of each sale), flat per-transaction fee, equipment rental, monthly minimum and chargebacks.
• •  For online sales, decide if you need real-time processing or can use lower-cost 'batching' where you collect card info and process by hand offline.

If your business retails items online, then you’ll want to set up one or more online merchant accounts. Merchant accounts allow you to access Internet credit card services as well as online check processing.

The online merchant accounts basics are easy to understand. You set up an account and buyers make payments through the service using checks or credit cards. The service will notify you that payment has been made and you can proceed to ship out the item.

1. Look at the benefits of online merchant services. Most companies will offer payment notification, numerous payment options for buyers, customer service and account security.

2. Compare Internet payment providers. Determine the Internet payment services that they offer and what type of seller protection that they provide. Top Internet merchant accounts include Paypal, PayPoint and Merchant Express.

3. Sign up for your business merchant account. Sign up will not usually cost you money and you will need to only provide some information about your business.

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

Learn about Internet merchant account services

The two main types of Internet payment providers are free and paid sites. With a free site, you don't have to pay a sign up or maintenance fee. However, transaction fees will likely get deducted from each payment. With a paid site, you'll pay a start up fee, but likely pay a lower transaction fee rate. You'll also want to find out the different payments buyers can use when paying.

I recommend: Global and Secure Pay gives an overview of the benefits of a personal online merchant account. It also gives advice on how to compare free and paid Internet payment services. Taming the Beast has an article that can give you the basics of online merchant options and how to choose your account provider.

Find Internet credit card services

Most people pay for purchases online using a credit card. The site that you choose should accept all major credit cards. Usually, business owners can start processing credit cards online within the week after signing up with a service provider.

I recommend: Website 101 gives you the basics about credit card payment processing and how to understand the fees associated with accepting credit cards. Authorize.net can get you started on accepting credit card payments for your merchandise.

Check out top online merchant accounts

Certain Internet payment providers attract more traffic than most. Due to their strong reputation, you'll want to check these sites first in order to make your customers feel secure when making payment.

I recommend: If you have ever sold anything on eBay, then you have likely heard of PayPal. This is the primary site used by eBay buyers to make payment to online merchants. WorldPay is a well known merchant account provider that requires businesses to submit an application in order to use their services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  As part of your small business merchant account, you'll likely have to pay a nominal transaction fee each time a buyer makes a payment through their Internet payment system.

Online merchant accounts are a convenient way for businesses to have access to their accounts. It also makes online credit card transactions easier to process. Online merchant accounts offer additional support features such as fraud services and customer support. Any business that wants to sell large quantities of their product online or sell to an international customer base needs to have an online merchant account. The account helps by offering faster processing and support for chargebacks.

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

Automated clearinghouse (ACH) payment

An automated clearinghouse (ACH) payment is an electronic transfer of funds when an individual buys a product from a merchant. ACH has become the national standard for linking merchant account payments to banks.

I recommend: NACHA provides an explanation of how ACH payments are processed.

Online payment gateway

An online payment gateway is a specific application that connects a shopping cart on a merchant's website to the merchant's payment processor to make a transaction.

I recommend: Merchant Accounts Express provides information on how an online payment gateway works to provide secure transactions for the customer and the merchant.

Keyed transaction, card not present transaction

A keyed transaction, or card not present transaction, is a payment that was processed manually by entering credit card information into an online payment gateway.

I recommend: VerePay provides tips for consumers and businesses to help prevent fraud when completing a card not present transaction.

Online processing

Online processing is a system that authorizes and completes a transaction made online. This is done through a payment gateway or third-party processor.

I recommend: Authorize provides a diagram that shows how online payment processing works.

SSL certificate

An SSL (secure socket layer encryption) certificate is a secure, private connection that all merchants must acquire for accepting payments. This secure connection provides safety measures for the customers and the merchant to avoid fraud and ID theft.

I recommend: VeriSign provides an explanation of SSL certificates and how they work to keep the customer's information safe.

Virtual terminal

A virtual terminal is an online interface that provides a merchant ways to manually process credit, debit and e-check transactions. This service is available on any computer with an Internet connection and is often used for phone sales and mail order businesses.

I recommend: Element Payment Services provides the benefits of using a virtual terminal and also provides a virtual terminal demo.