How To Accept Credit Cards

If you plan to do business online, then your website will need to accept credit cards. For many, the idea of applying for a merchant account sounds like a daunting task, but the truth is that building an online store is incredibly easy these days. The major credit card processing companies have improved and streamlined the process of setting up accounts, and software companies have had several years to improve their software to the point that it is easy for non-technical business owners to create and operate an online store effectively.

3rd Party Processors ? The inexpensive way to start For the beginning web entrepreneur, the most important issue in credit card processing is how much product you think you can realistically sell in a month. If you are selling less than $1000 per month, then you will want to go with a "third-party processor". PayPal is the most widely known and reputable third party processor, and you can easily set up an account with them.

Unlike traditional merchant accounts, PayPal accounts are free to set up and cost nothing on a monthly basis. You will pay more per transaction with PayPal than you would with a traditional merchant account, but for low-volume start-up businesses making less than $1000 per month, you will gladly choose higher transaction costs over account set-up fees, monthly account fees, minimum charges, interchange fees, gateway fees, and perhaps worst of all, account cancellation fees (just to name a few).

Steps You Need To Take To Set Up A PayPal Account

• Bank Account ? you will need a bank account for PayPal to deposit your funds into.
• Apply for a PayPal Account

Traditional Merchant Accounts If your processing volume will be higher than $1000 per month, then you will probably want to go with a traditional merchant account. Credit card processing companies generally charge a minimum monthly fee that is approximately equal to the amount of money you would pay to process $1000 per month. Generally speaking you can expect to pay around $50 per month in minimum charges for a merchant account. As you process more, your costs will go up, but the percentage of your gross sales that you pay for processing should go down.

Steps You Need To Take To Set Up A Traditional Merchant Account It is not difficult to set up a traditional merchant account, but you will need to follow several steps in order to pull it off.

• Get a business license
• Get a business bank account at your bank
• Make sure your web host supports your shopping cart system (you might even be able to get your shopping cart system bundled in with your credit card processing services for free).
• Try to determine the amount of business you will generate. Your credit card processing company will want to know how large each transaction will be, and how many transactions you expect to have per month.
• Negotiate with merchant account providers and establish your merchant credit card account (see list of merchant account providers).

Following are several merchant account providers you may be interested in contacting:

• www.paypal.com PayPal allows you to accept payments instantly without the need to set up special accounts or sign long-term contracts. You will want to strongly consider using this one if you are processing less than $1000 per month.
• www.totalmerchantservices.com Total Merchant Services is one of the largest resellers of merchant accounts both on and offline, and are trusted by literally tens of thousands of businesses of all sizes. They use First Data as their back-end processor.
• www.merchantexpress.com This is a well-respected processor that services both on and offline businesses.
• www.expandyourbusiness.com CardService International provides a very helpful eBook that you can download for free

Some Issues You Want To Consider

• Generally speaking you will be more concerned with up-front and recurring fees rather than the discount rate that processing companies will quote most prominently. The hidden fees generally eclipse the discount rates ? especially for low volume start-up businesses.
• Try to accurately estimate your business volume when you fill out your applications. The risk department at your processing company can put a freeze on your account if your volumes move significantly outside the estimates you have provided them.
• If you do experience a sudden spike in orders, you should contact the risk department of your processing company to make them aware of the spike BEFORE it hits their system. They may want to have you send them details about the orders and provide proof that the orders are legitimate. As inconvenient as this is, it is far better than getting your account frozen.
• Make sure you understand what fees you will be responsible for if you need to cancel your account before the end of your contract. You may find that you need to shut down your account for a variety of reasons, and you don't want to find out about exit fees after you get the bill!

In conclusion, you should start off your search for credit card processing by making a realistic estimate of your processing needs. If you believe you will be processing less than $1000 per month, then you will probably want to work with a third-party processor like PayPal. If you will be processing more than $1000 per month then you will want to work with a traditional credit card processing company (see list of processors above). You should be more concerned with upfront and recurring fees than with the discount rate. Once you have selected a processing company, you will want to make sure you have your business license and business bank account. Finally, you will need to make sure that your shopping cart system supports your processing company.

Mr. Coers specializes in helping entrepreneurs build effective web businesses. His website, http://www.profitchoice.com contains useful articles and "how-to" guides to help organizations build their brands and sell more effectively.

If you still have questions about Merchant Credit Card Accounts, you can access a free in-depth article on the subject here.

---

11 Things Small Business Owners Can Learn From Rudolph The Red-Nosed Reindeer

1. Everyone Makes A Difference ? Despite not letting him... Read More

Bad Regulators Cost Small Businesses

When a regulator finds a target to go after to... Read More

The Greatest Challenges the Internet Consultant Faces!

While there are few career paths that some would call... Read More

Is It Recess Yet?! Confessions of a Self Employed Workaholic

I have a confession to make. My name is Caroline... Read More

9 Things You Must Do To Maximize Your Chances Of Obtaining A Small Business Loan

To get approval for your small business loan application, you... Read More

Analyzing Customers in Your Business Plan

The Customer Analysis section of the business plan assesses the... Read More

Where to Find a Cash Windfall of $10,000 to $1,000,000 -- You Never Knew You Had

There is a rather famous true story called "Acres of... Read More

Setting Up as an Electronic Repair Authorized Service Center

If you plan to upgrade your workshop into an Authorized... Read More

Asphalt Paving: Striping Your Parking Lot

As you may already know, asphalt paved parking lots do... Read More

The Wrap on Ag Plastic

While driving through Pennsylvania farmland, you have probably noticed an... Read More

Home Based Franchise Case Study

Here is an interesting case study of a company, which... Read More

What are the COSTS Associated with joining Leads Groups?

When it comes to cost, how much can you afford... Read More

7 Habits of Highly Successful Small Business Owners

Do you spend every waking minute in your business? Do... Read More

Small Business Savvy: Reaching Key Big Business Decision Makers

As a solo entrepreneur or small business owner, one of... Read More

Measuring Your Way to Success

Are you a motivational speaker who consistently gets rave reviews... Read More

Blowing Your Own Horn ? A Key Marketing Strategy for Small Business

-- Building Credibility Through Success Stories --Successful solo entrepreneurs spend... Read More

Small Business Success Tip: Learn Something New Everyday

Your grandfather probably told you to "learn something new everyday".... Read More

How To Start A Blind Cleaning Business Quickly And Easily

Starting the blind cleaning business is one of the best... Read More

Motorizing for Profit - The Craftsmen Have Left the Building

In the summer, I can't drive two blocks without seeing... Read More

Asking the RIGHT Questions

Which questions do you need to ask to even get... Read More

Get In Touch With Your Competition!

We all know that competition is an ugly word but... Read More

Auto Detailers and Competitive Aspects of Automobile Detailing

There are both fixed and mobile detailers. Consumers often will... Read More

7 Cash Flow Secrets Your Accountant Never Told You

Looking for ways to boost your cash flow? As a... Read More

Growing Your Small Business Through Alliances and Joint Ventures

-- Beyond Cold Calling, "Warm" Calling and Sending E-mails --Many... Read More

The Workers? Compensation Situation in this Country is Nuts, Arnold in CA Takes Action

The Workers' Compensation situation in this country is unbelievable. Why,... Read More

Real World Accounting for Small Business Owners

If you're like me, you love accounting. It's so fascinating... Read More

Private Franchising is not Real a Real Franchise

One major issue not being addressed right now in the... Read More

Cashing In Your Chips & Pastures New

No, I'm not talking about gambling or dairy cows ?... Read More

The SBAs Savviest Program

Forget everything you've ever heard about the U.S. Small Business... Read More

Hosted PBX, Is It Right For You?

"Order Now!" "Your Business Will Fail If You Don't Have... Read More

How to Wash Mobile Homes as a Business

Washing manufactured homes, mobile homes, can be a lucrative and... Read More

Going Public: Now that You Have Successfully Made the Transition, What Do You Do?

Ok, you have successfully accomplished your dream of being the... Read More

Solving the Late Paying Customer Blues

Nothing can drive a business down faster than customers who... Read More