by Louise Balle
With a little more than 51 percent of Americans carrying two or more credit cards according to a 2007 report by Experian, a credit-reporting agency, any small business owner is smart to at least consider accepting credit cards as a form of payment. Whether you run your company from an online store or a mom-and-pop shop, a credit card merchant account is an important asset to your business. You have numerous options for setting up an account to accept credit cards from customers—the decision depends on how you plan to "meet" with your customers.
1. Determine the most common place where you'll come into contact with your customers—in person, over the phone, or on a website. This decision is key to determining the type of merchant account you should seek.
2. Choose a traditional merchant account if you plan to take credit card payments from customers at an established location. This is the option for a standard brick-and-mortar business. With this merchant account you need electronic credit card swiping equipment.
3. Choose a mail or telephone (MOTO) merchant account if most of your customers call in to purchase items. This is common for businesses that advertise on the radio or television and solicit phone orders. You can enter the customer's credit card information on an electronic terminal (no swiper necessary) or by using online processing software.
4. Choose a merchant account that establishes an online gateway or virtual terminal so that you can take credit card payments from customers on your website. With this type of merchant account you do not need any physical equipment other than your own computer to view payments.
5. Choose a cell phone or mobile merchant account if you plan to accept credit cards from customers in person while on the road at trade shows and fairs. The only equipment you need for this type of account is your cell phone. Some merchant services providers also offer wireless credit card swiping machines that you can use with a wireless internet connection.
6. Select a merchant services provider who offers the type of account you need. Examine the transaction and processing fees associated with the service—merchant services providers commonly charge a percentage of the sale, a flat per-transaction fee and a regular monthly fee to maintain the account.
7. Fill out the application for the merchant account that meets your needs. You'll have to provide your Social Security Number so that the company can perform a credit check. If approved, you'll receive a package via snail mail or email with information about how to set up your payment acceptance device and start accepting payments. You'll also receive a merchant number unique to your account. If you have to purchase equipment to go with your merchant account, your sales representative will guide you on the appropriate machines to buy.
http://smallbusiness.chron.com/accept-credit-cards-business-692.html
