| When looking for a merchant account provider, it is | | | | recommended providers. |
| important to do a lot of research. You do not want to | | | | Integrity of the Merchant Account Provider |
| pay too much or sign up with a disreputable company. | | | | It is extremely important to consider the integrity of the |
| However, you do need to keep in mind that once you | | | | merchant account provider that you select. There are |
| do sign up it could take up to a week for your | | | | a number of providers in the merchant account |
| application to be approved once it has been submitted. | | | | industry that cannot be trusted. |
| There are three main factors that you should consider | | | | Here is a list of some red flags to look for while |
| when selecting a merchant account provider. | | | | shopping for a merchant account. |
| 1. Price | | | | 1. The website of the company has misleading ads |
| 2. Integrity | | | | such as Free Merchant Account or Lowest |
| 3. Customer Service | | | | Prices Guaranteed. Research these ads carefully |
| Price (Merchant Account Rates and Fees) | | | | to find out exactly what they mean. |
| When shopping for a merchant account, it is important | | | | 2. You repeatedly get an answering machine every |
| to understand all of the rates and fees that the | | | | time you call. |
| merchant account provider charges. | | | | 3. They are using a free domain name or a free web |
| You will typically be charged the following fees: | | | | hosting service. (If they cannot afford a domain name, |
| Monthly Fee - Normally around $25 US and could vary | | | | then they probably should not be in the merchant |
| depending on whether you meet your minimum | | | | account business.) |
| monthly transactions. | | | | 4. They do not answer your questions precisely. |
| Discount Rate- Percentage taken from a sale that the | | | | 5. They have rates and fees that are not posted on |
| merchant pays to cover the costs of the transactions | | | | their website. |
| and the risk involved. Usually 1.5 percent to 3.5 percent. | | | | Make sure you search the internet for reviews of the |
| Transaction Fee - A flat fee charged for each | | | | company and for any unsatisfactory remarks. |
| transaction. Typically between $0.20 and $1.00 US per | | | | Customer Service |
| transaction. | | | | Customer Service is key for smooth transaction |
| Application Fee - The initial fee you are charged to | | | | processing. Try calling their customer service number |
| open the merchant account. Many merchant account | | | | to ask them some questions. Pay attention to the |
| providers do not charge application fees. | | | | amount of time that you are on hold. Make sure that |
| Equipment and Installation - Software can range from | | | | have friendly representatives that are knowledgeable |
| $0 to $1200 US or more depending on whether you | | | | and answer your questions precisely. They should be |
| have batch or real-time processing. Costs for | | | | genuinely interested in helping you. |
| hardware (POS terminals) can range from $500 to | | | | Superior customer service should also have a toll free |
| $1,500+ depending on the model you purchase. | | | | number and provide 24/7 availability. |
| If you have current or projected sales data, you can | | | | Although the integrity and the customer service are |
| forecast what your fees will be for different merchant | | | | extremely important when choosing a merchant |
| account providers. has done this for you with the top | | | | account provider, don’t be fooled into thinking |
| internet merchant account providers in their database. | | | | that you should pay more for these services. If you do |
| If you visit Searchmerchants.com, you may enter your | | | | your research and shop around, you should be able to |
| monthly sales data to compare fees for their | | | | find a quality provider that does not charge high fees. |