Top Vendors for Merchant Accounts

For most small businesses today, the ability to accept a full range of non-cash payments is essential to success. The choices include credit cards, debit cards, electronic checks, stored value cards, gift cards, smart cards and PayPal transfers.

In order to accept those forms of payment you'll need to set up some type of "merchant account" with a bank, credit card processing service or other vendor. Once you are approved for the merchant account (through a merchant account services department) and have set up the necessary hardware (card swipe terminal and receipt printer), software or online service, you'll be ready to begin accepting electronic payments via your mechant account.

The advantages of merchant asccounts -- and thus the ability to accept "plastic" payments -- are huge. Whether you sell to consumers or business-to-business (B-to-B), customers are more comfortable paying for goods and services by non-cash means. And for Web-based sales, credit card, PayPal and electronic check payments are a must.

But merchant account providers do consider online and telemarketing businesses to be a higher risk for credit card fraud. Startups that fall in those categories are often scrutinized more closely, and may pay higher fees to begin with and be asked for a deposit. Once your business establishes a track record, however, you can often request the deposit back and negotiate lower fees.

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New Low Cost Solution

QuickBooks, which already makes the most popular small business bookkeeping software, recently introduced an off-the-shelf credit card processing solution that works on your desktop PC. It's called the QuickBooks Credit Card Processing Kit, sells for $39.95 at major office supply and software outlets, and offers a quick, low-cost solution for startups.

More Choices from PayPal

PayPal, which started as a simple system for online businesses to accept payments, has blossomed into a full line of electronic payment solutions for small business. Customers can pay by credit card, debit card, bank account or their special PayPal account.

Get set up for a merchant account quickly

Some firms specialize in getting small businesses up and running quickly to accept credit card payments, sometimes with free setup.

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.

Comparison shop for credit card processing services

A great place to shop and compare services is BuyerZone.
Resource Nation, complete a short request form and receive free rate quotes and information on merchant accounts and credit card processing.

Make your merchant account mobile

Handheld wireless technology lets you accept credit card payments anywhere.

Line up a trade group discount

Some small business associations, business membership organizations and other industry trade groups offer discounted merchant account solutions as a member benefit.

• Credit card fraud is growing. Ask the merchant account vendors you are considering what fraud protection services they offer.
• Merchant account fees and charges vary greatly. Your costs include the discount rate (% of each sale you pay to the service provider), flat per-transaction fee, equipment rental, monthly minimum and "chargebacks" for customer returns, disputes or cancellations.
• 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.