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To Set Up a Merchant Account Call 1-800-757-5453
Essential points to remember while selecting merchant services
By: Jack Chevalier, Mon May 29th, 2006
According to sbinformation, all small businesses require some
form of payment processing. Understanding how to select merchant
services can impact your sales revenue and profit. Learn the
hidden rules of the merchant account business.
1: What are merchant services? Merchant services enable you to
process credit card payments from your customers. Itâ€™s a
special account tied to a credit card processor that works with
your customer's bank to help route payments into your bank
2: Who offers merchant services? Merchant services are provided
by specialized companies called merchant service providers or
independent sales organizations that offer payment processing.
Another source for setting up merchant accounts is financial
3: Which type of company is best for a small business owner? It
depends on your business situation. A home-based business owner
may be turned down from a bank since their business is less
established. Merchant service providers and independent sales
organizations can be more flexible. While one person may feel
comfortable dealing with their local bank, another might prefer
a credit card processor who offers low rates. Choose what is
important to your business.
4: Is a merchant account required to accept credit cards? No.
One option is to contract with companies providing payment
processing on your behalf. Their prices are higher from taking a
larger percentage of the ticket price. All credit card providers
charge your small business a percentage of each credit card
payment received. If you are considering selling on the
Internet, a merchant account provides a better professional
image. If you allow a third party company to process your
payments, you have to put your order form on the payment
processing site. You may only be able to get your funds two or
three times a month, limiting cash flow. With your own merchant
account, expect to receive those funds in less than threee days
from the time of transaction.
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