A Merchant Card Account Is Crucial For Every Business

4th December 2009

The value in accepting credit cards is certainly there.  Any business

whether small or large can benefit from accepting cards.  The first

part in accepting credit cards is obtaining a merchant card account.

There are many reasons for wanting to accept credit cards.  One of the

most valuable reasons continues to be the growth potential.  All

businesses can benefit significantly from taking credit cards because

it widens the consumer base for their products.

It is very important to evaluate many different companies as each one

will provide varying differences within the accounts.  Many businesses

can obtain a merchant account through their own bank.  It is important

that your business talks directly with the clearing house that will

provide the account as you do not want to incur extra charges.

According to the status of your account your business will be required

to pay a discount rate per transaction.  There will be transaction fees

as well.  The discount rate and fees will vary according to the type of

sale that the transaction encompasses.  Some fees that your business

may expect to incur are:

• Application Fee

• Programming Software Fee

• Statement Fee

• Minimum Monthly Transaction Fee

• Chargeback Fee

• Voice/Address Verification Fees

• Transaction Fee

Another important aspect regarding your merchant card account depends

largely on what type of business you have.  Terminals will be needed

for any type of transaction; however the terminal and accompanying

software will vary depending on what type of business you are running. 

The three main types are store-front (person to person), wireless (via

telephone/mail), and virtual (internet).

Some other things that all businesses should look for when setting up

merchant accounts are checking out the bank that will issue the

merchant credit card account, what clearinghouse is the bank using (if

you have not identified this already), what hardware/software gateways

are needed, do I need a merchant credit card broker (not necessary but

helpful) and maybe most importantly, the security. 

After you have determined those things there are a few other questions

that you may want to ask to better solidifying your understanding of

the merchant card account.  Such as, does the company offer 24 hour

customer service?  If not, then when is it available?  How long will it

take for funds to become available to my business?  Does the company

have a warranty on the equipment?  How long does it last, what does it

cover?  What types of cards are supported?  What type of security is


When looking at which company to choose it is vital that the business

remembers three things.  The service provided when accepting credit and

debit cards, especially with PDQ machines, should be safe, priced right and simple to use!  The rest

of the options will vary depending on what type of business the service

is intended for.

A merchant card account can be great for your business because it will

stimulate growth and whether you set up a traditional, offshore, high

risk, or third-party account it is vital to know your options and be

fully aware of what the business needs to be successful.