Choosing a Merchant Account

What's so good about choosing a merchant account?

Consider this: the companies that choose merchant accounts in order to accept credit card payments for products and services almost always generate higher profits than those companies who only accept cash. Industry statistics have shown that the average credit card transaction is almost $40. On the other hand, cash sales average out to a mere $9. If that isn't enough to sway you, think about this: for every company that doesn't accept credit card payments, there are five others that do. So, don't hesitate on choosing a merchant account. Instead, set yourself up with a merchant account, and enjoy the convenience and increase in profits that a merchant account offers!

What will choosing a merchant account entail?

The first step in choosing a merchant account is figuring out the type of merchant account you'll need for your business. Chances are, a typical point of sale merchant account will be right for you. This is a merchant account that enables you to handle face to face credit card transactions. You'll need to pinpoint the exact industry your company falls into, and come up with an accurate figure of monthly and annual income. You'll also need to have some basic paperwork filled out, and personal identification, as well as information on your business, and the bank account you use for business purposes.

What will choosing a merchant account cost?

When choosing a merchant account, you'll surely be wondering how much it's going to cost you to get everything set up. It's definitely a smart idea to go into the whole transaction while being mindful about costs. Let's talk about start-up costs: these include application and setup fees. This will run anywhere from $190 - $300. Sometimes these costs will include equipment purchase and rental costs, but you'll need to check with your merchant account provider to be sure. Also, once your merchant account is active, be aware that you'll pay per-transaction fees, processing fees, and monthly maintenance fees. There can also be fees for extra things, such as merchant account or equipment servicing, and after-hours support.

After choosing a merchant account, how do I get started?

Once you have found a merchant account provider that offers a merchant account you like, you'll need to submit an application. Usually, when choosing a merchant account, you'll have an application form ready, or will be able to find one on the company's website, or by calling up the company themselves and requesting an application. The application will ask for information about you, your business, the bank account your business uses, and sometimes tax information. You may also need various documentation for yourself, your business and its bank account, so be sure to have those readily available.