How do I Obtain a Merchant Account?

Qualifying for a merchant account depends on the financial status of your business and your industry. Credit history of the business and that of the owners is also evaluated before approval. High charge backs are a negative and make it difficult to obtain a merchant account.

Businesses selling goods are more preferable than those selling services. In addition, businesses that immediately hand over the goods to the customer are preferred over those who have to delay the delivery for any reason. Credit card processors love businesses that accept credit cards in person. The customer would hand over the card to you and you would swipe it through the terminal and get a signature. If you accept credit card on the phone or the internet, your business is considered higher risk. If such is the case, you may not be denied a merchant account but you would certainly pay higher fees.

Things to keep in mind while establishing a merchant account.

• Pricing for a merchant account varies based on your status and your choice of the provider. Compare quotes from several credit card processing vendors before making a decision.
• You will pay several kinds of fees besides the start-up and equipment fees including annual fees, programming fees, Internet processing fees, and shipping and handling.
• Every business is different. Help the merchant account provider understand the nature of your business before signing a contract. It would ensure better pricing and service. In addition, it is okay to negotiate, do not accept the first offer.
• Get an idea about your monthly costs by comparing numbers from your worst and best months.

Obtaining a merchant account or credit card processing capability is a major decision for your business. Do your homework before making a commitment to a service that can have a serious impact, positive or negative, on your business.