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If you've just started a new business, or are planning to, then you may want to consider accepting credit card payments from customers; therefore, you will need to research different merchant credit card processing services to find a service that works best for you and your business. Therefore, this article will address some of the different types of services that are available and some of the benefits each.
Traditional Merchant Account Services
Traditionally, merchant account services have been provided by large brick-and-mortar banks. In order to apply for a merchant account with your bank, use you need to fill out an application and be approved. While almost all merchant accounts require a credit check, merchant accounts offered by conventional banks usually have somewhat stricter requirements for credit worthiness and deposit accounts; however, if you have good credit and will be maintaining a relatively high bank balance, these types of merchant accounts may prove to be convenient – as you will be using the same bank to process your credit card payments and maintain your deposit accounts.
Wholesale Club Merchant Accounts
Another popular option for many small-business merchant accounts is the type offered by wholesale club warehouses such as Costco and Sam's Club. These wholesale clubs have thousands of small business members; therefore, they have been able to negotiate low transaction fees and discount rates with participating network banks and credit card processing gateways. In fact, many small businesses choose these types of services because they are easier to qualify for and often offer lower discount rates than many large banks. Therefore, if you are a member of one of these wholesale clubs, you should definitely consider them as an option for your merchant account.
E-Commerce Merchant Accounts
If your new businesses is an online business, you will need to find a merchant account that allows you to accept credit card payments over the Internet. While there are several providers of these types of accounts, Authorize.Net is by far one of the largest and most popular. In addition to allowing you to accept payments on your website for products or services, Authorize.Net allows you to directly enter customer credit card and payment information into a Web form and receive an approval or denial over the Internet.
Therefore, you can use the Authorize.Net Web system in lieu of a credit card machine; however, you should be aware that discount rates for these types of accounts will almost always be higher than when you swipe the customer's through a credit card machine.
In addition to the types of merchant accounts referenced above, merchant accounts are also offered by other types of companies and may be bundled with software packages or point-of-sale systems. Furthermore, if you seldom need to take credit card payments, you may want to consider a merchant account that allows you to use your cell phone to call an 800-number and get credit card approval over the phone.
Regardless of the type of merchant account you choose, be sure to research as many options as possible and choose an account that is convenient for you while offering low discount rates and transaction fees.
