How do I set up a Merchant Account?

Is it worth doing it? DEFINITELY.

People and businesses live on plastic nowadays. If you don’t accept credit cards, you will be missing out on a lot of sales.

Banks typically offer the best rates for merchant accounts. Depending on your bank, they may ask for your business plan, check your credit history, and check your business. Banks, however, are quite picky and typically do not offer merchant accounts to what they consider as high risk businesses such as a ‘home business’ or ‘internet business.’ I suggest you first go to your bank and check their requirements for merchant accounts.

If you are a member of Costco, they have one of the best rates in the market. So I suggest you look into it and become a member||P_SignDesc1&Sp=C

Here is a list of other merchant account providers. Check them out and see what works best for you

It is best to offer as many payment options to clients as possible — credit cards, checks, money order, even Paypal

One thing to be careful with merchant accounts: just because you received an order doesn’t mean that it’s good. Always do a smell test if there’s anything fishy with the order (for ecommerce, for example, high ticket items shipped overnight to a PO Box can be an indication of fraud). There’s so many identity theft nowadays that you have to verify if the card actually belongs to the customer. Otherwise, you’ll rack up a lot of chargebacks — which aside from being costly (you are charged a fee), can result in a cancellation of your merchant account

I have been self employed for 9 years and will tell you it is definetely worth it. The trend is for companies and individuals to use a checkcard with mastercard or visa on it. Visa and Mastercard have the lowest fees per transaction. American Express is second. Stay away from Discover they charge more and charge the merchant(you) high annual fees just to accept their card.

It is not fun paying the transaction fees but peace of mind knowing the money is good is great.

Plus they deposit the money electronically to the account of your choice within a few days.

You will need to buy a credit card terminal and they can be costly new.

This company sells refurbished models with a warranty cheap:

We are currently using the Verifone Omni 3200. Be sure to ask the merchant what models they accept first. Some merchants won’t accept old outdated terminals.

You will start off with a higher per transaction rate but in 6 months have your transactions reviewed and they may lower your rate. It is based on volume, minimal chargebacks etc.

I recommend this company. They work with small businesses and have always been there when we needed help:
Innovative Merchant Solutions 800-397-0707 (tell them I sent you T-Shirts Ink and More)

Good Luck!

If you are still not sure, the best option would be Paypal merchant services. They are easy to setup and there isn’t a lot of setup fees.

Try and see if it will be worth while and then consider traditional options such as banks and other processing services.

The fastest growing payment in America is CheckCards. Definitely should work with a company that can provide you with the type of account he needs for his type of Business. There is everything out there from portable imprinters to Wireless credit card machines.

Rates will differ based upon the type of business.

Is he providing a service that requires going to a house or business? If so he needs a wirless terminal.

Does he operate a retail shop? Plenty of temrinals to choose from.

Does he take orders over the phone or internet?
Then he can use ecommerce processing applications and doesnt need to purchase equipment.

Make sure you pick the right pricing program for your type of business. If you take orders over the phone, and you are set up for a retail account, you will be over billed. Sign up for a MOTO (Mail Order Telephone Order) account if taking orders over phone or internet. The initial rate will be slightly higher than a retail rate, but it will save you money in the long run.

IF YOU CHOOSE A RETAIL ACCOUNT, AND THE CARDS ARENT SWIPED, YOU WILL BE CHARGED THE RETAIL RATE 1.8-1.9% PLUS AN ADDITIONAL 1.5 – 2%.

I use a company that helped me get set up and helped me to understand how to get the best rate. Very Friendly.

Here is their website: