Find a Merchant Account for Your Business

Once you make the decision to accept credit card payments for your business, the next step is to open a merchant account. A merchant account provider is the entity that handles the credit card processing for the merchant, including authorization of the credit card and payment from the credit card company to the merchant. Where you get your account and which type you get depends largely on the needs of your business.

Banks
The most obvious merchant services provider is your current bank. Most banks do offer merchant accounts and having all of your accounts in the same location provides an added convenience. However, banks tend to have a strict approval process and may not be able to cater to the small business owner. Before you automatically apply at your bank, compare its services with those of independent sales organizations. You may be able to get the same level of service and better rates elsewhere.

Independent Sales Organizations
An independent sales organization, or ISO, is usually sponsored by a bank, but handles all of the credit card processing itself. Some ISOs only handle the credit card processing, while others also offer the equipment you will need, such as credit card terminals and/or processing software. There are many, many ISOs out there and you will need to decide which one is best for your business by comparing fees, available services, and the level of customer support.

Types of Merchant Accounts
There are several different types of merchant accounts and the one you need depends on what kind of business you have. A common type of merchant account is the retail account which is primarily for anyone who owns a store where people pay with credit cards in person. In addition to the credit card processing services, you will need credit card terminals to swipe the cards, along with printers for all of your receipts. Restaurants need similar merchant services and equipment, but they have specialized concerns. If you own a restaurant, you need to accommodate for tips, separate bar tabs, and compatibility with your point of sale software. An internet company, on the other hand, won't ever see an actual card at all. For these card-not-present transactions, you'll need a payment gateway (which is separate from your online shopping cart) to accept the credit card information. It's important to note that the payment gateway is separate from the merchant service provider. Some providers may make a payment gateway available to their clients, but that gateway is still supplied by a third party.

Before you look for a merchant account, assess your company's needs. If you own a retail store, but also sell products online, then you need to look for a provider that can handle both card-present transactions and card-not-present transactions. You also need to take into account the cost of terminals, software, and other accessories. You can find a great merchant services provider with a little preparation and research.